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Intensive and extensive margin adjustments to water scarcity in France's Cereal Belt

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  • Nina Graveline
  • Pierre Mérel

Abstract

Efficient water management in agriculture is becoming critical due to increasing environmental constraints and global food and bio-energy demands. Farmers may respond to increased water scarcity along three main adjustment margins: a move towards rain-fed agriculture (super-extensive margin) or towards less water-intensive crops (extensive margin), and a reduction in water intensity for irrigated crops (intensive margin). Using a positive mathematical programming model of regional supply calibrated to economic and agronomic information, we decompose the total effect of reduced water availability on these adjustment margins in Beauce, a productive cereal region that relies on a groundwater resource to meet its irrigation needs. For realistic water scarcity scenarios, 57 per cent of the total response is attributable to super-extensive margin adjustments. The extensive margin represents 28 per cent of the total response, while the intensive margin accounts for 15 per cent. Crop-level analysis reveals more subtle adaptation patterns.

Suggested Citation

  • Nina Graveline & Pierre Mérel, 2014. "Intensive and extensive margin adjustments to water scarcity in France's Cereal Belt," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 41(5), pages 707-743.
  • Handle: RePEc:oup:erevae:v:41:y:2014:i:5:p:707-743.
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    File URL: http://hdl.handle.net/10.1093/erae/jbt039
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    15. Humblot, Pierre & Jayet, Pierre-Alain & Petsakos, Athanasios, 2017. "Farm-level bio-economic modeling of water and nitrogen use: Calibrating yield response functions with limited data," Agricultural Systems, Elsevier, vol. 151(C), pages 47-60.
    16. José M. Rodríguez-Flores & Jorge A. Valero Fandiño & Spencer A. Cole & Keyvan Malek & Tina Karimi & Harrison B. Zeff & Patrick M. Reed & Alvar Escriva-Bou & Josué Medellín-Azuara, 2022. "Global Sensitivity Analysis of a Coupled Hydro-Economic Model and Groundwater Restriction Assessment," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 36(15), pages 6115-6130, December.
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    18. Yan, Tingting & Wang, Jinxia & Huang, Jikun, 2015. "Urbanization, agricultural water use, and regional and national crop production in China," Ecological Modelling, Elsevier, vol. 318(C), pages 226-235.
    19. Agudo-Domínguez, Alberto & Pérez-Blanco, C. Dionisio & Gil-García, Laura & Ortega, José Antonio & Dasgupta, Shouro, 2022. "Climate-sensitive hydrological drought insurance for irrigated agriculture under deep uncertainty. Insightful results from the Cega River Basin in Spain," Agricultural Water Management, Elsevier, vol. 274(C).
    20. Zheng, Yanan & Goodhue, Rachael E., 2022. "Intensive or Extensive Margin Effects? Growers’ Responses to the Restriction of High-Volatile Organic Compound (VOC) Pesticide Products in the San Joaquin Valley, California," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322085, Agricultural and Applied Economics Association.
    21. Prasenjit N. Ghosh & Ruiqing Miao & Emir Malikov, 2023. "Crop insurance premium subsidy and irrigation water withdrawals in the western United States," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 48(4), pages 968-992, October.

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