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Multi-Criteria Analysis Of Factors Use Level: The Case Of Water For Irrigation

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  • Gomez-Limon, Jose Antonio
  • Riesgo, Laura
  • Arriaza Balmón, Manuel

Abstract

In this paper we present a methodology to analyse input use in the agricultural sector. The novelty of the theoretical model explained is that it has been developed considering a multi-criteria environment. Thus, the optimal input use condition is determined by the assessment of "multi-attribute utility" and "multi-attribute marginal utility". We show how the approach adopted in this paper is a generalization of the single-attribute expected utility theory. The theoretical model developed is further implemented in an empirical application that studies water for irrigation use as a particular case. Results show how multi-attribute utility functions elicited for a sample of 52 irrigators explain differences on irrigation water use in relative homogenous agricultural systems, albeit exhibiting similar water partial utility functions. We conclude that these differences come from the dissimilar weights that farmers attached to each attribute in the aggregate utility function. The irrigated area considered as case study is located in North-western Spain.

Suggested Citation

  • Gomez-Limon, Jose Antonio & Riesgo, Laura & Arriaza Balmón, Manuel, 2003. "Multi-Criteria Analysis Of Factors Use Level: The Case Of Water For Irrigation," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25836, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae03:25836
    DOI: 10.22004/ag.econ.25836
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    1. Arriaza Balmón, Manuel & Gomez-Limon, Jose A. & Upton, Martin, 1997. "Local water markets for irrigation in southern Spain: A multicriteria approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 46(1), pages 1-23.
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    10. Huirne, R B M & Hardaker, J B, 1998. "A Multi-Attribute Utility Model to Optimise Sow Replacement Decisions," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 25(4), pages 488-505.
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    14. Gomez-Limon, Jose Antonio & Riesgo, Laura & Arriaza Balmón, Manuel, 2002. "Agricultural Risk Aversion Revisited: A Multicriteria Decision-Making Approach," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24827, European Association of Agricultural Economists.
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    1. 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.
    2. 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.

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    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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