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A mathematical programming model applied to the study of water markets within the Spanish agricultural sector

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  • Alberto Garrido

Abstract

Spanish irrigated agriculture uses about 80% of all the nation's available water resources. The need to increase the economic efficiency of current uses of water in the agricultural sector is perceived as the top priority of the country's national water policy. In Spain surface water is centrally allocated among competing users based on allocation criteria dictated by the Water Law. The complete absence of price or market signals is a major obstacle to induce irrigators to use water more efficiently. Water markets within the agricultural sector is a promising, though scarcely analyzed in Spain, solution to increase its economic efficiency. This research is an attempt to evaluate probable water transfers among farmers and irrigation districts as well as water price equilibria resulting from different water market arrangements. Three interconnected mathematical programming models permit the simulation of water use at the farm level and water market arrangements in the Guadalquivir Valley (Spain). Results show that water markets would be highly dependent on the level of transaction costs and on the relative reductions of water allotments due to non‐overlapping drought cycles among water districts. Copyright Kluwer Academic Publishers 2000

Suggested Citation

  • Alberto Garrido, 2000. "A mathematical programming model applied to the study of water markets within the Spanish agricultural sector," Annals of Operations Research, Springer, vol. 94(1), pages 105-123, January.
    • Handle: RePEc:spr:annopr:v:94:y:2000:i:1:p:105-123:10.1023/a:1018965016134
    DOI: 10.1023/A:1018965016134
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    Cited by:

    1. Calatrava-Requena, Javier & Garrido, Alberto, 2003. "The Effects Of Spot Water Markets On The Economic Risk Derived From Variable Water Supply," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25885, International Association of Agricultural Economists.
    2. Hu, Zhineng & Chen, Yazhen & Yao, Liming & Wei, Changting & Li, Chaozhi, 2016. "Optimal allocation of regional water resources: From a perspective of equity–efficiency tradeoff," Resources, Conservation & Recycling, Elsevier, vol. 109(C), pages 102-113.
    3. Gutiérrez-Martín, Carlos & Gómez-Limón, José A. & Montilla-López, Nazaret M., 2020. "Self-financed water bank for resource reallocation to the environment and within the agricultural sector," Ecological Economics, Elsevier, vol. 169(C).
    4. Gomez-Limon, Jose A. & Martinez, Yolanda, 2006. "Multi-criteria modelling of irrigation water market at basin level: A Spanish case study," European Journal of Operational Research, Elsevier, vol. 173(1), pages 313-336, August.
    5. Pulido-Velazquez, Manuel & Andreu, Joaqui­n & Sahuquillo, Andrés & Pulido-Velazquez, David, 2008. "Hydro-economic river basin modelling: The application of a holistic surface-groundwater model to assess opportunity costs of water use in Spain," Ecological Economics, Elsevier, vol. 66(1), pages 51-65, May.
    6. Joan Pujol & Meri Raggi & Davide Viaggi, 2006. "The potential impact of markets for irrigation water in Italy and Spain: a comparison of two study areas ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(3), pages 361-380, September.
    7. Vollaro, M. & Zavalloni, M. & Raggi, M. & Viaggi, D., 2013. "Potential for water use right market development in Italy: social acceptability in the context of climate change," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149912, Italian Association of Agricultural and Applied Economics (AIEAA).
    8. Jitao Zhang & Zengchuan Dong & Tian Chen, 2020. "Multi-Objective Optimal Allocation of Water Resources Based on the NSGA-2 Algorithm While Considering Intergenerational Equity: A Case Study of the Middle and Upper Reaches of Huaihe River Basin, Chin," IJERPH, MDPI, vol. 17(24), pages 1-18, December.
    9. Bartolini, F. & Bazzani, G.M. & Gallerani, V. & Raggi, M. & Viaggi, D., 2007. "The impact of water and agriculture policy scenarios on irrigated farming systems in Italy: An analysis based on farm level multi-attribute linear programming models," Agricultural Systems, Elsevier, vol. 93(1-3), pages 90-114, March.
    10. José A. Gómez-Limón & Yolanda Martínez Martínez, 2004. "Multicriteria Modelling of Irrigation Water Market at Basin Level," Economic Working Papers at Centro de Estudios Andaluces E2004/26, Centro de Estudios Andaluces.
    11. Calatrava-Leyva, Javier & Colmenero, Alberto Garrido, 2001. "Analisis del efecto de los mercados de agua sobre el beneficio de las explotaciones, la contaminacion por nitratos y el empleo eventual agrario," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 1(02), pages 1-21, December.
    12. Najafi Alamdarlo, Hamed & Pourmozafar, Hosein & Vakilpoor, Mohamad Hasan, 2019. "Improving demand technology and internalizing external effects in groundwater market framework, case study: Qazvin plain in Iran," Agricultural Water Management, Elsevier, vol. 213(C), pages 164-173.
    13. Bjornlund, Henning & Nicol, Lorraine & Klein, K.K., 2007. "Challenges in implementing economic instruments to manage irrigation water on farms in southern Alberta," Agricultural Water Management, Elsevier, vol. 92(3), pages 131-141, September.
    14. Alan Murray & Patricia Gober & Luc Anselin & Sergio Rey & David Sampson & Paul Padegimas & Yin Liu, 2012. "Spatial Optimization Models for Water Supply Allocation," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(8), pages 2243-2257, June.
    15. Gohar, Abdelaziz A. & Ward, Frank A., 2010. "Gains from expanded irrigation water trading in Egypt: An integrated basin approach," Ecological Economics, Elsevier, vol. 69(12), pages 2535-2548, October.
    16. Montilla-López, Nazaret M. & Gómez-Limón, José A. & Gutiérrez-Martín, Carlos, 2018. "Sharing a river: Potential performance of a water bank for reallocating irrigation water," Agricultural Water Management, Elsevier, vol. 200(C), pages 47-59.
    17. Bazzani, Guido Maria & di Pasquale, S. & Gallerani, Vittorio & Morganti, S. & Raggi, Meri & Viaggi, Davide, 2004. "The impact of the EU Water Framework Directive on irrigated agriculture in Italy: the case of the North-East fruit district," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 5(1), pages 1-9, January.

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