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Water Valuation in Agriculture under climate change (Case of Souss-Massa Basin, Morocco)

Author

Listed:
  • Elame, Fouad
  • Diukkali, Rachid

Abstract

Water resources become increasingly scarce, scarcity that will become acute in the coming years due, among others, to a reduction in water supply, as a result of climate change, and the increase in demand, accentuated by the population increase and the requirements of economic growth and development. In this context of scarcity, Morocco is confronted with the need to adapt its water management policy from a supply management to a demand management one. Implementing such a policy requires the adoption of new policy instruments and decision making support tools that take into account the complexity of the current and future situation, as well as allowing the assessment of the economic, social and environmental impacts of various water resources allocation alternatives at the overall river basin level. This paper compares several methods for calculating the water value and proposes an integrated economic water management model at the river basin scale. This model takes into account the economic, institutional, hydrological and agricultural aspects, as well as the behavior of various agents involved in water resources management and the competition among sectors. One Major contribution of this model is a detailed disaggregation by spatial units (hydrological units, cropping areas, and grazing land), by agricultural production systems (irrigated and rainfed crops), and by farm sizes. Basically it’s an optimization model with a non linear objective function, and using the positive mathematical programming method technique for its calibration. Given the conjunctive use of water at the river basin level, the model results show the tremendous impact of surface water management on the overexploitation of the ground water and the risk of its depletion. A management policy of surface water based on administrative pricing, pumping cost, and water supply marginal cost is proven inadequate for a sustainable resource management since it underestimates the overall water scarcity at the river basin level.

Suggested Citation

  • Elame, Fouad & Diukkali, Rachid, 2011. "Water Valuation in Agriculture under climate change (Case of Souss-Massa Basin, Morocco)," 2011 Conference: Impacts of Climate Change on Agriculture, December 6-7, 2011, Rabat, Morocco 188553, Moroccan Association of Agricultural Economics (AMAEco).
    • Handle: RePEc:ags:morc11:188553
    DOI: 10.22004/ag.econ.188553
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    References listed on IDEAS

    as
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    2. Tsur, Yacov & Dinar, Ariel & Doukkali, Rachid M. & Roe, Terry, 2004. "Irrigation water pricing: policy implications based on international comparison," Environment and Development Economics, Cambridge University Press, vol. 9(6), pages 735-755, December.
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    4. Barkaoui, Ahmed & Butault, Jean-Pierre, 2000. "Cereals and Oilseeds Supply within the EU, under AGENDA 2000: A Positive Mathematical Programming Application," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 1(2), pages 1-12, August.
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    6. Richard E. Howitt, 1995. "Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 329-342.
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