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Agriculture, technological change and environmental sustainability: Looking for a win-win water policy strategy

  • Llop Llop, Maria
  • Ponce Alifonso, Xavier,

This paper analyses the effects that technological changes in agriculture would have on environmental, social and economic indicators. Specifically, our study is focused on two alternative technological improvements: the modernization of water transportation systems versus the increase in the total factor productivity of agriculture. Using a computable general equilibrium model for the Catalan economy, our results suggest that a water policy that leads to greater economic efficiency is not necessarily optimal if we consider social or environmental criteria. Moreover, improving environmental sustainability depends less on the type of technological change than on the institutional framework in which technological change occurs. Keywords: agricultural technological changes, computable general equilibrium model, economic impact, water policy

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Paper provided by Universitat Rovira i Virgili, Department of Economics in its series Working Papers with number 2072/203158.

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Date of creation: 2012
Date of revision:
Handle: RePEc:urv:wpaper:2072/203158
Contact details of provider: Postal: Avda. de la Universitat,1 - 43204 Reus (Tarragona)
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  1. Hewings, Geoffrey J.D. & Dridi, Chokri & Guilhoto, Joaquim J.M., 2005. "Impacts of reallocation of resource constraints on the northeast economy of Brazil," MPRA Paper 38210, University Library of Munich, Germany.
  2. Nadia Belhaj Hassine & Véronique Robichaud & Bernard Decaluwé, 2010. "Agricultural Trade Liberalization, Productivity Gain and Poverty Alleviation: a General Equilibrium Analysis," Cahiers de recherche 1022, CIRPEE.
  3. Mohr, Robert D., 2002. "Technical Change, External Economies, and the Porter Hypothesis," Journal of Environmental Economics and Management, Elsevier, vol. 43(1), pages 158-168, January.
  4. Löfgren, Hans & Robinson, Sherman, 1997. "The Mixed-Complementarity Approach to Specifying Agricultural Supply in Computable General Equilibrium Models," 1997 Conference, August 10-16, 1997, Sacramento, California 197058, International Association of Agricultural Economists.
  5. Arndt, Channing & Jensen, Henning Tarp & Robinson, Sherman & Tarp, Finn, 1999. "Marketing margins and agricultural technology in Mozambique:," TMD discussion papers 43, International Food Policy Research Institute (IFPRI).
  6. Janis M. Carey & David Zilberman, 2002. "A Model of Investment under Uncertainty: Modern Irrigation Technology and Emerging Markets in Water," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(1), pages 171-183.
  7. Martin Odening & Oliver Mu�hoff & Alfons Balmann, 2005. "Investment decisions in hog finishing: an application of the real options approach," Agricultural Economics, International Association of Agricultural Economists, vol. 32(1), pages 47-60, 01.
  8. Murat Isik, 2004. "Incentives for Technology Adoption Under Environmental Policy Uncertainty: Implications for Green Payment Programs," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 27(3), pages 247-263, March.
  9. Prasada, Pahan, 2007. "General Equilibrium Impacts of Technological Change under Different Market Structures: A Comparison of Supply Managed and Other Primary Agricultural Markets in Canada," Sri Lankan Journal of Agricultural Economics, Sri Lanka Agricultural Economics Association (SAEA), vol. 9.
  10. Seung, Chang K. & Harris, Thomas R. & MacDiarmid, Thomas R. & Shaw, W. Douglass, 1998. "Economic Impacts of Water Reallocation: A CGE Analysis for Walker River Basin of Nevada and California," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 28(2).
  11. Phoebe Koundouri & Céline Nauges & Vangelis Tzouvelekas, 2006. "Technology Adoption under Production Uncertainty: Theory and Application to Irrigation Technology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(3), pages 657-670.
  12. Maria Berrittella & Katrin Rehdanz & Arjen Y. Hoekstra & Roberto Roson & Richard S.J. Tol, 2006. "The Economic Impact Of Restricted Water Supply: A Computable General Equilibrium Analysis," Working Papers FNU-93, Research unit Sustainability and Global Change, Hamburg University, revised Jul 2006.
  13. Necmi Karagozoglu & Martin Lindell, 2000. "Environmental Management: Testing the Win-Win Model," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 43(6), pages 817-829.
  14. Dinar, Ariel & Letey, J., 1991. "Agricultural water marketing, allocative efficiency, and drainage reduction," Journal of Environmental Economics and Management, Elsevier, vol. 20(3), pages 210-223, May.
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