Your search found 5 records
1 Berbel, J.; Gomez-Limon, J. A.. 2000. The impact of water-pricing policy in Spain: An analysis of three irrigated areas. Agricultural Water Management, 43(2):219-238.
Water rates ; Pricing ; Agricultural policy ; Irrigated farming ; Legislation ; Models ; Economic impact ; Social impact ; Environmental effects ; Crop yield / Spain
(Location: IWMI-HQ Call no: PER Record No: H026246)
2 Gomez-Limon, J. A.; Gutierrez-Martin, C.; Montilla-Lopez, N. M. 2020. Recovering water for the environment during droughts through public water banks within a monopsony-monopoly setting. Water Resources and Economics, 32:100163. [doi: https://doi.org/10.1016/j.wre.2020.100163]
Water market ; Public water ; Drought ; Monopsony ; Monopoly ; Marginal costs ; Environmental flows ; Water allocation ; Water scarcity ; Water policy ; Water rights ; River basins ; Institutions ; Funding ; Farmers ; Models / Spain / Guadalquivir River Basin
(Location: IWMI HQ Call no: e-copy only Record No: H049995)
(5.19 MB)
Allocation trade is an instrument that has been widely used to recover water for the environment during periods of scarcity (droughts). This paper proposes a water bank operating within a monopsony-monopoly setting with the dual purpose of reallocating water among farmers and acquiring water for the environment during drought periods. The proposed water bank would be managed by a public agency seeking to maximize economic efficiency generated in purchases and sales of water for agriculture and the efficiency generated by the recovery of water allocations for the environment. An additional, innovative feature of the analysis performed is that it considers the inefficiencies in the economy as a whole caused by public spending on water allocation purchases, measured through the marginal cost of public funds. The potential performance of the proposed water bank is simulated by mathematical programming techniques, taking the Guadalquivir River Basin (Southern Spain) as an empirical case study. The results provide evidence that, in terms of economic efficiency, the proposed institutional arrangement outperforms the instruments currently in place to purchase water allocations.
3 Gomez-Limon, J. A.; Gutierrez-Martin, C.; Montilla-Lopez, N. M. 2021. Priority water rights. Are they useful for improving water-use efficiency at the irrigation district level? Agricultural Water Management, 257:107145. (Online first) [doi: https://doi.org/10.1016/j.agwat.2021.107145]
Water rights ; Water use efficiency ; Water allocation ; Irrigation water ; Water scarcity ; Water availability ; Water supply ; Water market ; Water management ; Drought ; Decision making ; River basin institutions ; Farmers ; Agricultural sector ; Optimization methods / Spain
(Location: IWMI HQ Call no: e-copy only Record No: H050595)
https://www.sciencedirect.com/science/article/pii/S0378377421004224/pdfft?md5=3a769713dd26f2a6c31c5923ca5f4ff3&pid=1-s2.0-S0378377421004224-main.pdf
https://vlibrary.iwmi.org/pdf/H050595.pdf
https://vlibrary.iwmi.org/pdf/H050595.pdf
(0.73 MB) (752 KB)
This paper examines the effectiveness of reforming water rights regimes in the agricultural sector by replacing allocation procedures based on the proportional rule with the implementation of a priority rule that establishes security-differentiated water rights. The main objective is to assess whether this change improves the economic efficiency of water allocation at the irrigation district level, particularly during cyclical scarcity events. To this end, a Positive Mathematical Programming model is built to simulate the performance of the proposed reform in an irrigation district in southern Spain. The results show that the efficiency gains brought about by this change are very small, which casts doubt on its ability to improve water-use efficiency in the agricultural sector at the local level (i.e., irrigation district) under current local climate and water availability conditions. In any case, further research is needed to assess the suitability of this change in allocations rules at basin scale with greater farm heterogeneity, especially given the likelihood of more frequent, more intense droughts due to climate change.
4 Gomez-Limon, J. A.; Granado-Diaz, R. 2023. Assessing the demand for hydrological drought insurance in irrigated agriculture. Agricultural Water Management, 276:108054. [doi: https://doi.org/10.1016/j.agwat.2022.108054]
Drought ; Hydrological factors ; Agricultural insurance ; Irrigated farming ; Irrigation water ; Water supply ; Climate change ; Uncertainty ; Willingness to pay ; Policies ; Water allocation ; Risk management ; Case studies / Spain
(Location: IWMI HQ Call no: e-copy only Record No: H051596)
https://www.sciencedirect.com/science/article/pii/S0378377422006011/pdfft?md5=5148a10b2b24e2196fd999b01ca5769a&pid=1-s2.0-S0378377422006011-main.pdf
https://vlibrary.iwmi.org/pdf/H051596.pdf
https://vlibrary.iwmi.org/pdf/H051596.pdf
(1.08 MB) (1.08 MB)
Concerns about hydrological drought risk and irrigation water supply reliability have grown in recent years due to the increasing demand for water for irrigation and other uses, and the decline in water availability due to climate change. Hydrological drought insurance hedging against water supply gaps can be a key instrument for adapting irrigated agriculture to this new scenario, since it improves the resilience of the irrigation sector, which is having to cope with increasing uncertainty and vulnerability. The objective of this paper is to assess farmers’ willingness to pay (WTP) for index-based hydrological drought insurance under different policy designs, considering several different amounts of insured capital, insurance deductibles, and contract terms. To that end, it uses a discrete choice experiment as the valuation method and the Sector BXII irrigation district (southern Spain) as a case study. The results show that farmers would be willing to pay for the proposed hydrological drought insurance, stating a higher preference for policy designs with lower amounts of insured capital, lower deductibles, and shorter contract terms. Moreover, the results also show the existence of heterogeneity among farmers’ preferences, depending on their socio-economic characteristics. Finally, we compare the distribution of farmers’ WTP for different policy design options of the proposed insurance with the commercial premium estimated using actuarial analysis. The comparison confirms that only the options with lower levels of insured capital present a mean WTP below the commercial premium, while the rest of the policy design options would need to be subsidized like other agricultural insurance schemes to make them attractive to most farmers.
5 Villanueva, A. J.; Gomez-Limon, J. A.. 2023. Heterogeneity in the WTA-WTP disparity for irrigation water reliability. Water Resources and Economics, 42:100219. [doi: https://doi.org/10.1016/j.wre.2023.100219]
Irrigation water ; Heterogeneity ; Water supply ; Water policies ; Climate change ; Uncertainty ; Farm income ; Willingness to pay ; Case studies
(Location: IWMI HQ Call no: e-copy only Record No: H051921)
https://www.sciencedirect.com/science/article/pii/S221242842300004X/pdfft?md5=255dbf01e14328aa5aed22b410bc7bab&pid=1-s2.0-S221242842300004X-main.pdf
https://vlibrary.iwmi.org/pdf/H051921.pdf
https://vlibrary.iwmi.org/pdf/H051921.pdf
(0.84 MB) (856 KB)
This paper assesses the WTP and WTA for improvements and deteriorations, respectively, in irrigation water supply reliability. The assessment relies on a double-sided discrete choice experiment valuation using latent-class modeling accounting for preference and scale heterogeneity. This valuation approach is empirically implemented using a case study of a Spanish irrigated district significantly impacted by climate change. The results obtained show individual-specific preference heterogeneity in the WTA-WTP disparity, primarily driven by the different impacts of water reliability on farmers' utility (changes in business revenues and costs, uncertainty in business performance, and farm income effects) and interindividual differences in loss aversion (different degrees of endowment effect). Additionally, the significant scale heterogeneity and ordering effects found suggest that it may be advisable to use modeling approaches that account for them. Several policy-relevant implications can be drawn, including the non-neutrality of the initial allocation of property rights, repercussions on the cost-benefit of climate change adaptation measures, and the need to account for irrigators’ preference heterogeneity in order to design successful market-based instruments.
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