IDEAS home Printed from
   My bibliography  Save this paper

Input use and capacity constraint under uncertainty : the case of irrigation


  • Bontems, P.
  • Favard, P.


In this paper we consider a two periods model of cropping using irrigation. The farmer takes two kind of decisions, one related to the level of investment in irrigation capacity and the other one to the irrigation level in each period. In the first period, decisions are taken under uncertainty on the rainfall level which is resolved at the beginning of the second period. Assuming a CARA utility function, the total water use is non monotonic with respect to the price of investment. Indeed, taxing capital may induce the farmer to increase the total level of irrigation despite that the irrigation capacity decreases. Surprisingly, the impact of an increase of water price is generally ambiguous even assuming risk neutrality. ...French Abstract : Les auteurs étudient, dans cet article, un modèle de culture irriguée à 2 périodes. L'agriculteur prend deux types de décisions, l'une reliée au niveau d'investissement en capacité d'irrigation et l'autre reliée au niveau d'apport d'eau dans chaque période. Au début de la 1ère période, les décisions sont prises en présence d'incertitude quant au niveau effectif des pluies, qui est connu au début de la 2nd période. Sous l'hypothèse de préférences vis-à-vis du risque de type CARA, les auteurs montrent que taxer l'investissement en capital peut induire un accroissement du niveau d'irrigation préventive bien que le niveau d'investissement décroisse. Par ailleurs, dans le cas d'une fonction de production agricole de type logistique, le montant total d'eau consommée est non monotone par rapport au prix unitaire de l'investissement. Ainsi, taxer le capital peut induire l'agriculteur à augmenter l'apport d'eau total par irrigation alors que la capacité d'irrigation décroît. Enfin, de manière surprenante, une augmentation du prix de l'eau conduit en général à des résultats ambigus même en supposant la neutralité vis-à -vis du risque.

Suggested Citation

  • Bontems, P. & Favard, P., 2002. "Input use and capacity constraint under uncertainty : the case of irrigation," Economics Working Paper Archive (Toulouse) 37, French Institute for Agronomy Research (INRA), Economics Laboratory in Toulouse (ESR Toulouse).
  • Handle: RePEc:rea:inrawp:37

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item



    JEL classification:

    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rea:inrawp:37. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (RAYNAL Helene). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.