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An economic model for water allocation in North Eastern Spain

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  • Bielsa, Jorge
  • Duarte, Rosa

Abstract

The aim of this paper is to construct and apply a model for the allocation of water between two competing users, namely irrigation and hydropower. The model is applied in a case study of a specific water system located in North Eastern Spain. Starting with an irrigation-hydropower joint income function, we develop a constrained maximisation process that takes into account the environmental, institutional and actual priority of the water rights. The resulting solution can be useful as a guide for potential bargains between users. Furthermore, we evaluate the results for different supply (precipitation) and water allotments (increase in irrigated land). The results show that there are sufficient incentives so as to reach agreements that lead to improvements in a Pareto sense without side payments.

Suggested Citation

  • Bielsa, Jorge & Duarte, Rosa, 2001. "An economic model for water allocation in North Eastern Spain," MPRA Paper 36729, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:36729
    as

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    References listed on IDEAS

    as
    1. Young, Robert A. & Haveman, Robert H., 1985. "Economics of water resources: a survey," Handbook of Natural Resource and Energy Economics, in: A. V. Kneese† & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 2, chapter 11, pages 465-529, Elsevier.
    2. Dinar, Ariel & Wolf, Aaron, 1994. "International Markets for Water and the Potential for Regional Cooperation: Economic and Political Perspectives in the Western Middle East," Economic Development and Cultural Change, University of Chicago Press, vol. 43(1), pages 43-66, October.
    3. Ronald C. Griffin & Shih-Hsun Hsu, 1993. "The Potential for Water Market Efficiency When Instream Flows Have Value," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(2), pages 292-303.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. M. Babel & A. Gupta & D. Nayak, 2005. "A Model for Optimal Allocation of Water to Competing Demands," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 19(6), pages 693-712, December.
    2. Leakey, Roger & Kranjac-Berisavljevic, Gordana & Caron, Patrick & Craufurd, Peter & Martin, Adrienne M. & McDonald, Andy & Abedini, Walter & Afiff, Suraya & Bakurin, Ndey & Bass, Steve & Hilbeck, Ange, 2009. "Impacts of AKST on development and sustainability goals," Book Chapters,, International Water Management Institute.
    3. Yerushalmi, Erez, 2012. "Measuring the administrative water allocation mechanism and agricultural amenities," Economic Research Papers 270633, University of Warwick - Department of Economics.
    4. Eamen, Leila & Brouwer, Roy & Razavi, Saman, 2020. "The economic impacts of water supply restrictions due to climate and policy change: A transboundary river basin supply-side input-output analysis," Ecological Economics, Elsevier, vol. 172(C).
    5. Chunlong Li & Jianzhong Zhou & Shuo Ouyang & Chao Wang & Yi Liu, 2015. "Water Resources Optimal Allocation Based on Large-scale Reservoirs in the Upper Reaches of Yangtze River," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 29(7), pages 2171-2187, May.
    6. Rupérez-Moreno, Carmen & Senent-Aparicio, Javier & Martinez-Vicente, David & García-Aróstegui, José Luis & Calvo-Rubio, Francisco Cabezas & Pérez-Sánchez, Julio, 2017. "Sustainability of irrigated agriculture with overexploited aquifers: The case of Segura basin (SE, Spain)," Agricultural Water Management, Elsevier, vol. 182(C), pages 67-76.
    7. M. Habibi Davijani & M. E. Banihabib & A. Nadjafzadeh Anvar & S. R. Hashemi, 2016. "Multi-Objective Optimization Model for the Allocation of Water Resources in Arid Regions Based on the Maximization of Socioeconomic Efficiency," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(3), pages 927-946, February.
    8. Leaky, R. & Caron. P. & Craufurd, P. & Martin, A. & McDonald, A. & Abedini, W. & Afiff, S. & Bakurin, N. & Bass, S. & Hilbeck, A. & Jansen, T. & Lhaloui, S. & Lock, K. & Newman, J. & Primavesi, O. & S, 2009. "Impacts of AKST on development and sustainability goals," IWMI Books, Reports H042791, International Water Management Institute.

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    More about this item

    Keywords

    Environmental and Natural Resource Economics; Water Economics; Bargaining; Cooperative Games;
    All these keywords.

    JEL classification:

    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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