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Water Pricing (water + pricing)

Distribution by Scientific Domains

Business, Economics, Finance and Accounting	40%

Selected Abstracts

The potential role for economic instruments in drought management,

IRRIGATION AND DRAINAGE, Issue 4 2004
Stephen Merrett
changement du climat; gestion des sécheresses; irrigation; prix de l'eau Abstract Climate change in the twenty-first century will likely reduce the return period of drought events, indicating that drought management will be even more important in the future than it is already. In the case of England's Anglian region it is shown that two principal institutions are responsible for drought management,the Environment Agency and Anglian Water Services (AWS). The region has a fast-growing population of more than 5 million people, it has 58% of the most productive agricultural land in England and Wales, and in some summers irrigation can make up 50% of water use. An examination of the drought plans of the Agency and AWS demonstrates that in both cases the policy instruments that they deploy to manage drought are informational, infrastructural and regulatory. In neither case would they use water pricing as a management tool. Moreover, the government's drought plan guidelines for the water utilities make no reference to economic instruments of drought management nor do they suggest that utilities should review the economic impact on their customers of regulatory action. The principal issues that would arise if water charging were to be deployed as a drought management instrument are then reviewed. The paper concludes by proposing that national government should evaluate the feasibility, costs, benefits and risks of replacing the regulatory instruments of drought management by economic instruments. Copyright © 2004 John Wiley & Sons, Ltd. Avec les changements climatiques prévus au vingt-et-unième siècle les périodes de sècheresse deviendront probablement plus fréquentes et la gestion de ces sécheresses deviendra plus problématique. Cet article indique que dans la région Anglian de l'Angleterre deux institutions ont la responsabilité de cette gestion: "the Environment Agency" et "Anglian Water Services". Un examen des plans d'action pour la sécheresse de ces deux institutions montre que, dans les deux cas, les instruments qui seront déployés seront soit informationels soit infrastructurels soit règlementaires. Il n'y a pas dans ces plans une seule référence au prix de l'eau comme instrument de gestion. De même les conseils du gouvernement national pour la préparation de ces plans ignorent les instruments économiques. L'article conclut que le gouvernement doit réviser la faisabilité des instruments de gestion des sécheresses, et d'estimation de leurs coûts et bénéfices pour introduire davantage d'instruments économiques. Copyright © 2004 John Wiley & Sons, Ltd. [source]

Irrigation water management policies: Allocation and pricing principles and implementation experience

NATURAL RESOURCES FORUM, Issue 2 2004
Ariel Dinar
Abstract Food security and sustainable development require efficient use of water resources, especially in irrigation. Economic pricing can be an effective tool to achieve more efficient water use, provided it is supported by other policies in implementation. Applying various water pricing and cost recovery arrangements is suggested for efficient allocation. Any adverse impact on farmers' incomes must be addressed and more reliable service must accompany higher prices. Experience from several countries suggests a variety of implementation issues. Essential complements to water pricing are water distribution rules and technological choices at critical nodes in the delivery system that allow farmers flexibility in conserving water in response to higher prices. Among supporting institutions, water users associations seem a higher priority than water markets. [source]

Treating water as an economic good: policies and practices in irrigation agriculture in Xinjiang, China

THE GEOGRAPHICAL JOURNAL, Issue 2 2010
SHEN YULING
Since the 1990s, the idea that water should be treated as an economic good has become a widely acclaimed but also disputed principle. In Xinjiang, a dry region in north-west China, the idea has been translated into government water management policies and practices. Based on investigations in the Kaidu-Kongque River Basin, this paper describes how the idea is interpreted in concrete water fee policies and practices in local water management in irrigation agriculture, and discusses what problems exist in current water fee collection practices and expenditure, as well as in water management in irrigation agriculture. The main argument is that water management is deeply tied to the political, social and economic conditions of the state, and water pricing is part of the complex, diverse and changing social reality. In the study area, the interpretation of treating water as an economic good has not contributed to a fairer and more efficient use of scarce water resources, but rather it has been applied to achieve other political and economic goals as well as to strengthen a powerful and rapidly growing bureaucracy. [source]

An empirical assessment of the value of irrigation water: the case study of Murrumbidgee catchment,

AUSTRALIAN JOURNAL OF AGRICULTURAL & RESOURCE ECONOMICS, Issue 1 2010
Muhammad Ejaz Qureshi
Evaluation of value of irrigation water is essential for supporting policy decision making relating to investments in the irrigation sector, efficient allocation of irrigation water and water pricing and for crafting policies to compare the variable impacts of water reform within and across sectors of the economy. This paper asks the question of how much an established irrigator would pay for water and at what price farmers planning to expand the area they have under irrigation would consider paying for the right to access water. An analytical framework is developed to estimate the net present value of both annual and perennial agricultural activities in the Murrumbidgee catchment. Using these estimates the total value of water used in Murrumbidgee catchment is estimated. An aggregate water supply curve is derived for the catchment from where water may be acquired from irrigators for environmental flows. [source]

Market-Based Policy Instruments, Irrigation Water Demand, and Crop Diversification in the Bow River Basin of Southern Alberta

CANADIAN JOURNAL OF AGRICULTURAL ECONOMICS, Issue 2 2010
Lixia He
This paper investigates two market-based policy instruments, short-term water trading and volumetric water pricing, in a jurisdiction where historical water allocations are based on the seniority of appropriative water rights. The analysis identifies the potential effects of alternative surface water allocations on crop choices and on producer incomes in three irrigation districts in the Bow River Sub-basin of the South Saskatchewan River. The short-run effects of these alternative policy instruments are examined in scenarios where seasonal water supplies are reduced by 10,30% relative to the 2003 water usage levels. An important contribution of the paper is to present a computational, positive mathematical programming model that integrates both irrigation decisions and specific crop choices when characterizing agents' optimal responses to moderate water scarcity. The numerical results illustrate the manner in which the use of these market-based economic instruments can increase the irrigated land area and economic welfare relative to the allocations made based only on the seniority of water rights. Under full information with no transactions costs, the use of water pricing for allocation purposes can achieve the same production outcomes as could be reached under short-term water trading. However, the distribution of potential monetary gains and losses among agents would vary considerably across policies. Le présent article étudie deux instruments de politique fondés sur le marché, soit le commerce de l'eau à court terme et l'établissement du prix de l'eau en fonction du volume, dans une province où l'attribution de l'eau est historiquement fondée sur l'ancienneté des droits d'appropriation de l'eau. L'analyse a exposé les effets potentiels de divers moyens d'attribution de l'eau de surface sur le choix des cultures et le revenu des producteurs dans trois districts d'irrigation situés dans le sous-bassin de la rivière Bow qui s'écoule dans le sous-bassin de la rivière Saskatchewan Sud. Nous avons examiné les effets à court terme de ces moyens dans des scénarios où les approvisionnements saisonniers en eau ont été réduits de 10 à 30 p. 100 par rapport aux niveaux d'utilisation de l'eau établis en 2003. Le présent article visait, entre autres, à présenter un modèle de programmation mathématique positive intégrant à la fois les décisions concernant l'irrigation et le choix de cultures spécifiques au moment de caractériser les réactions optimales des agents face à une rareté modérée de l'eau. Les résultats numériques ont montré de quelle façon l'utilisation de ces instruments économiques fondés sur le marché pouvait accroître les superficies irriguées et le bien-être économique comparativement à l'attribution de l'eau fondée sur l'ancienneté des droits d'appropriation de l'eau. Selon les renseignements complets sans coûts de transaction, le recours à l'établissement du prix de l'eau en fonction du volume et le commerce de l'eau à court terme peuvent permettre d'obtenir les mêmes résultats en matière de production. Toutefois, la répartition des pertes et des gains éventuels entre les agents varieraient considérablement d'une politique à l'autre. [source]