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Water Policy And The Sustainability Of Irrigated Systems In Italy

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  • Bazzani, Guido Maria
  • di Pasquale, S.
  • Gallerani, Vittorio
  • Viaggi, Davide

Abstract

The management of water resources is today one of the main issues in most countries. In Italy, as in many other European countries, irrigation is the main sector using water and hence it is at the centre of the water policy agenda. Water management for irrigation requires suitable policy tools able to meet social objectives and private behaviour. The legal framework in the European Union is today faced with the new Water Framework Directive (60/2000), that sets up new criteria for water management, regulation and pricing. Among other things, the Water Framework Directive introduces the principle of full cost recovery and the polluter pays principle for water users. For many areas of Italy, this may be a significant shift compared to present payment criteria, based on traditional rights, area prices, and only a partial cost recovery from final users. The objective of this paper is to analyse the problem of water regulation for irrigated agriculture, through a simulation model based on the integration of a mathematical decision making model and a principal agent. The methodology allows to quantify water demand and optimal regulation from the point of view of the policy maker. The results show major impacts of water availability and prices on farm income. The adoption of a mix of pricing instruments related at the same time to charges associated to crop mix, water consumption and pollution can significantly improve water policy efficacy.

Suggested Citation

  • Bazzani, Guido Maria & di Pasquale, S. & Gallerani, Vittorio & Viaggi, Davide, 2002. "Water Policy And The Sustainability Of Irrigated Systems In Italy," Working Papers 14401, University of Minnesota, Center for International Food and Agricultural Policy.
  • Handle: RePEc:ags:umciwp:14401
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    File URL: http://ageconsearch.umn.edu/record/14401/files/wp02-10.pdf
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    References listed on IDEAS

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    1. Moore, Michael R. & Gollehon, Noel R. & Carey, Marc B., 1994. "Alternative models of input allocation in multicrop systems: irrigation water in the central plains, United States," Agricultural Economics, Blackwell, vol. 11(2-3), pages 143-158, December.
    2. Wachenheim, Cheryl J. & Saxowsky, David, 2003. "Profits and Risk: Fitting an Old Framework to a New Agriculture," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2003, pages 1-10.
    3. Joost M.E. Pennings & Philip Garcia, 2001. "Measuring Producers' Risk Preferences: A Global Risk-Attitude Construct," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 993-1009.
    4. 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.
    5. Chongwoo Choe & Iain Fraser, 1999. "Compliance Monitoring and Agri-Environmental Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 50(3), pages 468-487.
    6. Dinar, A. & Subramanian, A., 1997. "Water Pricing Experiences," Papers 386, World Bank - Technical Papers.
    7. Moore, Michael R. & Gollehon, Noel R. & Carey, Marc B., 1994. "Alternative models of input allocation in multicrop systems: Irrigation water in the Central Plains, United States," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 11(2-3), December.
    8. Glenn D. Schaible, 1997. "Water Conservation Policy Analysis: An Interregional, Multi-Output, Primal-Dual Optimization Approach," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(1), pages 163-177.
    9. 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.
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    Keywords

    Resource /Energy Economics and Policy;

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