Incremental water charging in agriculture. A case study of the Regione Emilia Romagna in Italy

Environmental Modelling and Software

Volumn 78, Issue , 2016, Pages 202-215

  Perez Blanco C D ^a,b   Standardi, G ^a,b   Mysiak, J ^a,b   Parrado, R ^a,b   Gutierrez Martin C ^c  

^a FONDAZIONE ENI ENRICO MATTEI   (Italy)

^b CENTRO EURO MEDITERRANEO SUI CAMBIAMENTI CLIMATICI   (Italy)

^c UNIVERSITY OF CÓRDOBA   (Spain)

Author keywords

Agriculture; CGE model; Incremental water charging; Mathematical programming; Q15; Q18; Q25; Q51; Q58

Indexed keywords

CALIBRATION; COMMERCE; MATHEMATICAL PROGRAMMING; WATER CONSERVATION; WATER SUPPLY;

CGE MODEL; Q15; Q18; Q25; Q51; Q58;

AGRICULTURE;

AGRICULTURAL LAND; CALIBRATION; COMMODITY PRICE; COMPUTABLE GENERAL EQUILIBRIUM ANALYSIS; DROUGHT; ENVIRONMENTAL IMPACT ASSESSMENT; MATHEMATICAL ANALYSIS; TRADE-OFF; WATER STORAGE; WATER USE;

EMILIA-ROMAGNA; ITALY;

EMILIA;

EID: 84954215766     PISSN: 13648152     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.envsoft.2015.12.016     Document Type: Article

References (103)

1. AAEGSI Individuazione ed Esplicitazione dei Costi Ambientali e della Risorsa nel Metodo Tariffario Idrico (MTI) 2014, (Consultation Document No. 539/2014/R/IDR), Autorità per l'energia elettrica il gas e il sistema idrico.
2. Aaheim H. National responsibilities for adaptation strategies: lessons from four modelling frameworks. Making Climate Change Work for Us: European Perspectives on Adaptation and Mitigation Strategies 2012, (Neufeldt, H. and Hulme, M., Cambridge). T. Dokken, S. Hochrainer, A. Hof, E. Jochem, R. Mechler, D.P. van Vuuren (Eds.).
3. AdBPo Sintesi dell'analisi economica sull'utilizzo idrico. Elaborato 6, Piano di Gestione 2010, Autorità di Bacino del Fiume Po, (Report No. 6). Autorità di Bacino del Fiume Po.
4. Afriat S. The construction of a utility function from expenditure data. Int. Econ. Rev. 1967, 8:67-77.
5. ANBI Proposte per la crescita: sicurezza territoriale, alimentare ed ambientale (Report) 2013, Associazione Nazionale Bonifiche, Irrigazioni e Miglioramenti Fondiari (ANBI).
6. Anderson J.E., Wincoop E.van Gravity with gravitas: a solution to the border puzzle. Am. Econ. Rev. 2003, 93:170-192.
7. Armington P.S. A theory of demand for products distinguished by place of production. IMF Staff Pap. 1969, 16:159-178.
8. Arrow K., Solow R., Portney P., Leamer E., Radner R., Schuman H. Report of the NOAA Panel on Contingent Valuation (Report) 1993, National Oceanic and Atmospheric Administration, Washington D.C. (US).
9. Balali H., Khalilian S., Viaggi D., Bartolini F., Ahmadian M. Groundwater balance and conservation under different water pricing and agricultural policy scenarios: a case study of the Hamadan-Bahar plain. Ecol. Econ. 2011, 70:863-872. 10.1016/j.ecolecon.2010.12.005.
10. Berbel J., Gómez-Limón J.A. The impact of water-pricing policy in Spain: an analysis of three irrigated areas. Agric. Water Manag. 2000, 43:219-238. 10.1016/S0378-3774(99)00056-6.
11. Berbel J., Calatrava J., Garrido A. Water pricing and irrigation: a review of the European experience. Irrigation Water Pricing: the Gap between Theory and Practice 2007, 295-327. CABI, Wallingford. F. Molle, J. Berkoff (Eds.).
12. Bigano A., Bosello F., Roson R., Tol R.S.J. Economy-wide impacts of climate change: a joint analysis for sea level rise and tourism. Mitig. Adapt. Strateg. Glob. Change 2008, 13:765-791. 10.1007/s11027-007-9139-9.
13. Bishop R. Endangered species and uncertainty: the economics of a safe minimum standard. Am. J. Agric. Econ. 1978, 60.
14. Bosello F., Nicholls R.J., Richards J., Roson R., Tol R.S.J. Economic impacts of climate change in Europe: sea-level rise. Clim. Change 2012, 112:63-81. 10.1007/s10584-011-0340-1.
15. Bosello F., Parrado R., Rosa R., Eboli F. REDD in the carbon market: a general equilibrium analysis. Environ. Model. Assess. 2014, 20:103-115. 10.1007/s10666-014-9419-1.
16. Cakmak E., Dudu H., Saracoglu S., Diao X., Roe T., Tsur Y. Macro-micro Feedback Links of Irrigation Water Management in Turkey 2008, (World Bank Policy Research Working Paper No. 4781), World Bank, Washington D.C. (US).
17. California State Legislature California Water Code, Code 2013.
18. Carrera L., Standardi G., Bosello F., Mysiak J. Assessing direct and indirect economic impacts of a flood event through the integration of spatial and computable general equilibrium modelling. Environ. Model. Softw. 2015, 63:109-122. 10.1016/j.envsoft.2014.09.016.
19. Chung E.-S., Lee K.S. Prioritization of water management for sustainability using hydrologic simulation model and multicriteria decision making techniques. J. Environ. Manage 2009, 90:1502-1511. 10.1016/j.jenvman.2008.10.008.
20. Ciscar J.-C., Iglesias A., Feyen L., Szabó L., Regemorter D.V., Amelung B., Nicholls R., Watkiss P., Christensen O.B., Dankers R., Garrote L., Goodess C.M., Hunt A., Moreno A., Richards J., Soria A. Physical and economic consequences of climate change in Europe. Proc. Natl. Acad. Sci. 2011, 108:2678-2683. 10.1073/pnas.1011612108.
21. Cornish G., Perry C.J. Water Charging in Irrigated Agriculture; Lessons from the Field 2003, (Report No. OD150), HR Wallingford Ltd., Wallingford (UK).
22. Cornish G., Bosworth B., Perry C.J., Burke J.J., Food and Agriculture Organization of the United Nations Water Charging in Irrigated Agriculture: an Analysis of International Experience 2004, (Report No. 28), FAO Water Reports. Food and Agriculture Organization of the United Nations, Rome (Italy).
23. Crase L., O'Keefe S., Dollery B. Talk is cheap, or is it? The cost of consulting about uncertain reallocation of water in the Murray-Darling Basin, Australia. Ecol. Econ. 2013, 88:206-213.
24. Darwin R.F., Tol R.S.J. Estimates of the economic effects of sea level rise. Environ. Resour. Econ. 2001, 19:113-129. 10.1023/A:1011136417375.
25. Diewert W.E. Afriat and revealed preference theory. Rev. Econ. Stud. 1973, 40:419-425.
26. Dono G., Giraldo L., Severini S. Pricing of irrigation water under alternative charging methods: possible shortcomings of a volumetric approach. Agric. Water Manag. 2010, 97:1795-1805. 10.1016/j.agwat.2010.06.013.
27. Eboli F., Parrado R., Roson R. Climate-change feedback on economic growth: explorations with a dynamic general equilibrium model. Environ. Dev. Econ. 2010, 15:515-533. 10.1017/S1355770X10000252.
28. EC Water Framework Directive 2000/60/EC, Council Directive 2000.
29. EC Communitacion from the Commission to the European Parliament and the Council Addressing the Challenge of Water Scarcity and Droughts in the European Union 2007, (Communication No. COM(2007) 414 final), European Commission, Brussels (Belgium).
30. EC Green Paper on Market-based Instruments for Environment and Related Policy Purposes 2007, (Communication No. COM(2007) 140 final), European Commission, Brussels (Belgium).
31. EC EU Blueprint to Safeguard Europe's Water Resources 2012, (Communication No. COM(2012) 673 final), European Commission, Brussels (Belgium).
32. EEA&OECD European Environment Agency-Organization for Economic Co-operation and Development Database on Economic Instruments 2013, [WWW Document], Eur. Environ. Agency-Organ. Econ. Co-Oper. Dev, URL, (accessed 9.30.13). http://www2.oecd.org/ecoinst/queries/.
33. EEA Water Resources in Europe in the Context of Vulnerability 2012, (Report No. 12/2012), European Environment Agency.
34. EEA Assessment of Cost Recovery through Water Pricing 2013, (Report No. 16/2013), European Environment Agency, Copenhagen (Denmark).
35. ERR Piano di Tutela delle Acque (Report) 2005, Regione Emilia Romagna.
36. Eurostat Eurostat Database 2015, [WWW Document], Eurostat Database, URL, (accessed 10.5.13). http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/themes.
37. FAO Aquastat Database 2012, [WWW Document], Aquastat Database, URL, (accessed 2.19.15). http://www.fao.org/nr/aquastat.
38. Gasson R. Goals and values of farmers. J. Agric. Econ. 1973, 24:521-542. 10.1111/j.1477-9552.1973.tb00952.x.
39. Gómez-Limón J.A., Riesgo L. Water pricing: analysis of differential impacts on heterogeneous farmers. Water Resour. Res. 2004, 40:1-12. 10.1029/2003WR002205.
40. Gutierrez-Martin C., Gomez C.M. Assessing irrigation efficiency improvements by using a preference revelation model. Span. J. Agric. Res. 2011, 9:1009-1020. 10.5424/sjar/20110904-514-10.
41. Gutiérrez-Martín C., Pérez-Blanco C.D., Gómez C.M., Berbel J. Price volatility and water demand in agriculture. a case study of the Guadalquivir river basin (Spain). Economics of Water Management in Agriculture 2014, 319-348. Boca Raton (US). T. Bournaris, J. Berbel, B. Manos, D. Viaggi (Eds.).
42. Hanak E., Lund J., Dinar A., Gray B., Howitt R., Mount J., Moyle P., Thompson B. Managing California's Water: from Conflict to Reconciliation (Report) 2011, Public Policy Institute of California, San Francisco (US).
43. Hanemann W.M. The economic conception of water. Water Crisis: Myth or Reality? 2006, 61-91. Taylor & Francis, New York.
44. Hassan R., Thurlow J., Roe T., Diao X., Chumi S., Tsur Y. Macro-micro Feedback Links of Water Management in South Africa 2008, CGE Analyses of Selected Policy Regimes, Washington D.C. (US), (World Bank Policy Research Working Paper No. 4768).
45. Heckelei T., Britz W., Zhang Y. Positive mathematical programming approaches - recent developments in literature and applied modelling. Bio Based Appl. Econ. J. 2012, 1(1):109-124.
46. Hellegers P.J.G.J., Perry C.J. Can irrigation water use be guided by market forces? Theory and practice. Int. J. Water Resour. Dev. 2006, 22:79-86. 10.1080/07900620500405643.
47. Global Trade Analysis: Modeling and Applications 1997, Cambridge University Press, Cambridge; New York. T.W. Hertel (Ed.).
48. ICWE The Dublin statement on water and sustainable development. Int. Conf. Water Environ. U. N 1992, [WWW Document], URL, (accessed 9.30.13). http://www.inpim.org/files/Documents/DublinStatmt.pdf.
49. Inada K.-I. On a two-sector model of economic growth: comments and generalization. Rev. Econ. Stud. 1963, 30:119-127.
50. INEA Condizionalità Ex-Ante per le Risorse Idriche: Opportunità e Vincoli per il Mondo Agricolo (Report) 2014, Istituto Nazionale di Economia Agraria.
51. INEA RICA Database 2014, [WWW Document], Rete Inf. Contab. Agric. RICA, URL, (accessed 11.19.14). http://www.rica.inea.it/public/it/index.php.
52. ISMEA Rete di Rilevazione Prezzi ISMEA 2014, [WWW Document], Prezzi Mensili - ISMEA, URL. http://www.ismea.it/flex/cm/pages/ServeBLOB.php/L/IT/IDPagina/27.
53. o Censimento Generale dell'Agricoltura), Istituto Nazionale di Statistica.
54. ISTAT ISTAT Database 2014, [WWW Document], ISTAT Database, URL, (accessed 1.22.14). http://www.istat.it/en/products/databases.
55. ISTAT Trasporto Merci su Strada. 2008-2009 2015, [WWW Document], ISTAT Database, URL. http://www.istat.it/it/archivio/34954.
56. ISTAT Trasporto Aereo. 2003-2009 2015, [WWW Document], ISTAT Database, URL. http://www.istat.it/it/archivio/14035.
57. ISTAT Trasporto Marittimo. 2005-2008 2015, [WWW Document], ISTAT Database, URL. http://www.istat.it/it/archivio/14084.
58. ISTAT Trasporto Ferroviario. 2004-2009 2015, [WWW Document], ISTAT Database, URL. http://www.istat.it/it/archivio/12909.
59. ISTAT Conti Economici Regionali. Anni 1995-2009 2015, [WWW Document], ISTAT Database, URL. http://www.istat.it/it/archivio/12718.
60. Kampas A., Petsakos A., Rozakis S. Price induced irrigation water saving: unraveling conflicts and synergies between European agricultural and water policies for a Greek water district. Agric. Syst. 2012, 113:28-38. 10.1016/j.agsy.2012.07.003.
61. Loch A., Adamson D., Mallawaarachchi T. Role of hydrology and economics in water management policy under increasing uncertainty. J. Hydrol. Creating Partnersh. Between Hydrol. Soc. Sci. A Prior. Prog. 2014, 518:5-16. Part A. 10.1016/j.jhydrol.2013.10.049.
62. Mallawaarachchi T., Foster A. Dealing with Irrigation Drought: the Role of Water Trading in Adapting to Water Shortages in 2007-08 in the Southern Murray-Darling Basin 2009, (Report prepared for the Australian Government Department of the Environment, Water, Heritage and the Arts (DEWHA)), Australian Bureau of Agricultural and Resource Economics (ABARE).
63. Mallawaarachchi T., Hone S., Adamson D., Alasebu Y., Oliver M., Kokic P., Quiggin J., Gooday P. Reduced Water Availability Impacts on Agricultural Activities and Regional Economies in the Murray-Darling Basin 2008, (ABARE client report prepared for the Murray-Darling Basin Commission), Australian Bureau of Agricultural and Resource Economics (ABARE), Canberra (Australia).
64. Mays L.W. Water Resources Engineering 2001, John Wiley & Sons. ed. L. W. Mays, New York (US).
65. McCallum J. National borders matter: Canada-U.S. regional trade patterns. Am. Econ. Rev. 1995, 85:615-623.
66. McGregor P., Partridge M., Rickman D. Innovations in regional computable general equilibrium (CGE) modelling. Reg. Stud. 2010, 44:1307-1310.
67. Molden D., Oweis T., Steduto P., Bindraban P., Hanjra M.A., Kijne J. Improving agricultural water productivity: Between optimism and caution. Agric. Water Manag. Compr. Assess. Water Manag. Agric. 2010, 97:528-535. 10.1016/j.agwat.2009.03.023.
68. Molle F. Water scarcity, prices and quotas: a review of evidence on irrigation volumetric pricing. Irrig. Drain. Syst. 2009, 23:43-58. 10.1007/s10795-009-9065-y.
69. Mysiak J., Carrera L., Massarutto A. Sicurezza idrica nel contesto dei cambiamenti climatici. Qualità Dell'ambiente Urbano, IX Rapporto, Focus Su Acque E Ambiente Urbano 2013, 113-120. L'istituto Superiore per la protezione e la ricerca ambientale. ISPRA (Ed.).
70. Mysiak J., Carrera L., Amadio M., Blanco Pérez, Dionisio Carlos, Santato S. Development of MSPs in the Po River Basin District. Controlled Floods on Agricultural and Scarcely Developed Rural Land (MSP-F) and Managing Severe Drought Spells in the Otherwise Water-abundant River Basin District (MSP-D) 2014, (Deliverable No. 7.2), Fondazione Eni Enrico Mattei.
71. Narayanan B., Aguiar A., McDougall R. Global Trade, Assistance, and Production: the GTAP 8 Data Base 2012, Center for Global Trade Analysis, Purdue University.
72. National Water Commission Efficient Water Resource Pricing in Australia: an Assessment of Administered Scarcity Pricing in Urban Areas 2011, (Report No. 44), Waterlines Report Series, Australian Government - National Water Commission.
73. OECD Water Security for Better Lives (Report) 2013, OECD Studies on Water. Organisation for Economic Co-operation and Development, Paris (France).
74. OECD Climate Change, Water and Agriculture 2014, Organisation for Economic Co-operation and Development, Paris.
75. OECD OECD Data - Water 2015, [WWW Document], OECD Database, URL, (accessed 12.16.15). https://data.oecd.org/water/water-withdrawals.htm.
76. Paris Q. Economic Foundations of Symmetric Programming 2011, Cambridge University Press, Cambridge (UK).
77. Parrado R., De Cian E. Technology spillovers embodied in international trade: intertemporal, regional and sectoral effects in a global CGE framework. Energy Econ. 2014, 41:76-89. 10.1016/j.eneco.2013.10.016.
78. Partridge M.D., Rickman D.S. Regional computable general equilibrium modeling: a survey and critical appraisal. Int. Reg. Sci. Rev. 1998, 21:205-248.
79. Partridge M., Rickman D. Computable general equilibrium (CGE) modelling for regional economic development analysis. Reg. Stud. 2010, 44:1311-1328.
80. Pérez-Blanco C.D., Delacámara G., Gómez C.M. Water charging and water saving in agriculture. Insights from a revealed preference model in a Mediterranean basin. Environ. Model. Softw. 2015, 69:90-100. 10.1016/j.envsoft.2015.03.006.
81. Pineschi G., Colaizzi La definizione dei costi ambientali e della risorsa 2014.
82. PRBDA Crisi idrica estate 2015-Cabina di Regia (Cabina di Regia) 2015, Po River Basin District Authority.
83. Pulido-Velazquez M., Alvarez-Mendiola E., Andreu J. Design of efficient water pricing policies integrating basinwide resource opportunity costs. J. Water Resour. Plan. Manag. 2013, 139:583-592. 10.1061/(ASCE)WR.1943-5452.0000262.
84. Randall A. Property entitlements and pricing policies for a maturing water economy. Aust. J. Agric. Resour. Econ. 1981, 25:195-220. 10.1111/j.1467-8489.1981.tb00398.x.
85. Rivers N., Groves S. The welfare impact of self-supplied water pricing in Canada: a computable general equilibrium assessment. Environ. Resour. Econ. 2013, 55:419-445. 10.1007/s10640-013-9633-3.
86. Rodrigues G.C., Paredes P., Gonçalves J.M., Alves I., Pereira L.S. Comparing sprinkler and drip irrigation systems for full and deficit irrigated maize using multicriteria analysis and simulation modelling: ranking for water saving vs. farm economic returns. Agric. Water Manag. 2013, 126:85-96. 10.1016/j.agwat.2013.05.005.
87. Rose A., Liao S.-Y. Modeling regional economic resilience to disasters: a computable general equilibrium analysis of water service disruptions* J. Reg. Sci. 2005, 45:75-112. 10.1111/j.0022-4146.2005.00365.x.
88. Rose A., Benavides J., Chang S.E., Szczesniak P., Lim D. The regional economic impact of an earthquake: direct and indirect effects of electricity lifeline disruptions. J. Reg. Sci. 1997, 37:437-458. 10.1111/0022-4146.00063.
89. Samuelson P.A. A note on the pure theory of consumer's behaviour. Economica 1938, 5:61-71. 10.2307/2548836.
90. Simon H.A. A behavioral model of rational choice. Q. J. Econ. 1955, 69:99-118. 10.2307/1884852.
91. Standardi G., Bosello F., Eboli F. A sub-national version of the GTAP model for Italy. Note Lav. - Fondazione Eni Enrico Mattei 2014, 2014.04:1-20.
92. Statistica E.R. Statistiche sulle produzioni agricole vegetali 2014, [WWW Document], Stat. Reg. Emilia Romagna, URL, (accessed 11.17.14). http://statistica.regione.emilia-romagna.it/.
93. Stavins R.N. Experience with market-based environmental policy instruments. Handbook of Environmental Economics, Handbooks in Economics 2003, 355-435. Elsevier.
94. Steenbergen F.van, Cornish G., Perry C.J. Charging for Irrigation Services: Guidelines for Practitioners 2007, IWA Publishing, London (UK).
95. UN UN-water Status Report on the Application of Integrated Approaches to Water Resources Management for Rio+20 (Report), Status Report on Integrated Water Resources Management 2012, United Nations.
96. UN The United Nations World Water Development Report 2014 (Report) 2014, United Nations.
97. URBER Bilancio economic finanziario delle bonifiche Emilia Romagna 2015, [WWW Document], Unione Reg. Delle Bonifiche Emilia Romagna, URL, (accessed 7.31.15). http://www.urber.it/consorzi-cartina.asp.
98. Varian H.R. Revealed preference and its applications*. Econ. J. 2012, 122:332-338. 10.1111/j.1468-0297.2012.02505.x.
99. Vezzoli R., Mercogliano P., Pecora S., Zollo A.L., Cacciamani C. Hydrological simulation of Po River (North Italy) discharge under climate change scenarios using the RCM COSMO-CLM. Sci. Total Environ. 2015, 521-522:346-358. 10.1016/j.scitotenv.2015.03.096.
100. Wheeler S., Garrick D., Loch A., Bjornlund H. Evaluating water market products to acquire water for the environment in Australia. Land Use Policy 2013, 30:427-436. 10.1016/j.landusepol.2012.04.004.
101. Wittwer G., Horridge M. Bringing regional detail to a CGE model using census data. Spat. Econ. Anal. 2010, 5:229-255. 10.1080/17421771003730695.
102. World Bank Annual Freshwater Withdrawals, Agriculture 2015, [WWW Document], World Bank Database, URL, (accessed 12.16.15). http://data.worldbank.org/indicator/ER.H2O.FWAG.ZS.
103. Young M. Environmental Effectiveness and Economic Efficiency of Water Use in Agriculture, in: OECD Studies on Water 2010, 1-33. Organisation for Economic Co-operation and Development, Paris (France).