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Irrigation Water Pricing in Southern Europe and Cyprus: The effects of the EU Common Agricultural Policy and the Water Framework Directive

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  • Christos Zoumides

    (Department of Environmental Management, Cyprus University of Technology)

  • Theodoros Zachariadis

    (Department of Environmental Management, Cyprus University of Technology)

Abstract

The agricultural policy adopted by the European Union until recently has contributed to economically inefficient, environmentally unsustainable and socially inequitable management of irrigation water in Southern Europe. The Union’s willingness to tackle these issues in an integrated manner is evident in the reformed Common Agricultural Policy and the Water Framework Directive. This paper aims to critically assess the potential impact and effectiveness of these new policies on irrigation water in Southern European countries. In this context, issues of economic efficiency, environmental sustainability and social equity as well as practical limitations are addressed. The paper concludes that, although water pricing is potentially a very effective tool in terms of economic efficiency, its environmental effectiveness is not guaranteed thus it may not drastically improve water resource management in Southern Europe. The same holds for Cyprus, where water pricing may only be effective if private groundwater extraction is fully monitored and charged by governmental authorities. Moreover, Cyprus needs to shift to a low water consuming agricultural sector by focusing on the cultivation of crops that are consistent with the changing climatic conditions and the increasing water scarcity of the country.

Suggested Citation

  • Christos Zoumides & Theodoros Zachariadis, 2009. "Irrigation Water Pricing in Southern Europe and Cyprus: The effects of the EU Common Agricultural Policy and the Water Framework Directive," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 3(1), pages 99-122, June.
  • Handle: RePEc:erc:cypepr:v:3:y:2009:i:1:p:99-122
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    References listed on IDEAS

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    1. Varela-Ortega, C., 2007. "Policy-driven determinants of irrigation development and environmental sustainability: a case study in Spain," IWMI Books, Reports H040612, International Water Management Institute.
    2. Consuelo Varela‐Ortega & José M. Sumpsi & Alberto Garrido & María Blanco & Eva Iglesias, 1998. "Water pricing policies, public decision making and farmers' response: implications for water policy," Agricultural Economics, International Association of Agricultural Economists, vol. 19(1-2), pages 193-202, September.
    3. Gomez-Limon, Jose A. & Riesgo, Laura, 2004. "Irrigation water pricing: differential impacts on irrigated farms," Agricultural Economics, Blackwell, vol. 31(1), pages 47-66, July.
    4. Consuelo Varela-Ortega & José Sumpsi & Maria Blanco, 2002. "Water availability in the Mediterranean region," Chapters, in: Floor Brouwer & Jan van der Straaten (ed.), Nature and Agriculture in the European Union, chapter 6, Edward Elgar Publishing.
    5. Varela-Ortega, Consuelo & M. Sumpsi, Jose & Garrido, Alberto & Blanco, Maria & Iglesias, Eva, 1998. "Water pricing policies, public decision making and farmers' response: implications for water policy," Agricultural Economics, Blackwell, vol. 19(1-2), pages 193-202, September.
    6. Molle, Francois & Berkoff, Jeremy (ed.), 2007. "Irrigation water pricing: the gap between theory and practice," IWMI Books, International Water Management Institute, number 137957.
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    Cited by:

    1. Christos Zoumides & Adriana Bruggeman & Theodoros Zachariadis & Stelios Pashiardis, 2013. "Quantifying the Poorly Known Role of Groundwater in Agriculture: the Case of Cyprus," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(7), pages 2501-2514, May.
    2. Alexandros Polycarpou & Theodoros Zachariadis, 2013. "An Econometric Analysis of Residential Water Demand in Cyprus," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(1), pages 309-317, January.
    3. Ali Shah, Muhammad Azeem & Akbar, Muhammad Zain Bin, 2021. "Solar irrigation in Pakistan: a situation analysis report," IWMI Books, Reports H050621, International Water Management Institute.

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