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

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  • Llop Llop, Maria
  • Ponce Alifonso, Xavier,

Abstract

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

Suggested Citation

  • Llop Llop, Maria & Ponce Alifonso, Xavier,, 2012. "Agriculture, technological change and environmental sustainability: Looking for a win-win water policy strategy," Working Papers 2072/203158, Universitat Rovira i Virgili, Department of Economics.
  • Handle: RePEc:urv:wpaper:2072/203158
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    References listed on IDEAS

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    5. 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).
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    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. Lofgren, Hans & Robinson, Sherman, 1997. "The mixed-complementary approach to specifying agricultural supply in computable general equilibrium models:," TMD discussion papers 20, International Food Policy Research Institute (IFPRI).
    13. 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.
    14. Llop Llop, Maria & Ponce Alifonso, Xavier, 2011. "A never-ending debate: Demand versus supply water policies. A CGE analysis for Catalonia," Working Papers 2072/152139, Universitat Rovira i Virgili, Department of Economics.
    15. Murat Isik, 2004. "Incentives for Technology Adoption Under Environmental Policy Uncertainty: Implications for Green Payment Programs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 27(3), pages 247-263, March.
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