Abstract
This work discusses the conflict between two of the main objectives of the EU Water Framework Directive: cost recovery and economic efficiency in the use of irrigation water. In the Mediterranean region, this conflict is commonly embedded in a state of under-utilization of irrigation networks managed by Water User Associations (WUAs). This under-utilization arises from factors independent of farmers’ choice, such as water shortage, crises in the sector, and changes to the Common Agricultural Policy. This prevents the facilities from operating at the minimum average cost. This paper argues that farmers should not suffer this inefficiency, which results in them paying higher water prices to cover the costs of water supply. Indeed, the application of the Water Directive should be rethought, taking into account the specific problems related to irrigation in the Mediterranean region. Based on an econometric analysis of the costs of water distribution in a WUA in Sardinia (Italy), we propose a payment system based on two components. Primarily there is a fee related to the number of hectares under irrigation. In addition there is a fee that considers the intensity of irrigation: this component is to encourage farmers to save water. The results show that the proposed approach has some desirable effects, including higher rates of cost recovery and possibly a reduction in the use of groundwater. Finally, the proposed system is not overly expensive for the rest of the community, who must bear the costs of inefficiencies in the use of irrigation water that do not depend on choices of farmers.
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Notes
In some districts that distribute water by gravity, it is necessary to raise the water by several meters to overcome hilly sections. Such districts are assigned to a separate category because this technology requires the use of electricity for pumping, in contrast to districts that distribute water solely under the influence of gravity.
AC and MC of the HP districts cross at 7900 hectares of irrigated land, which is far larger than the highest level observed in the examined years (1902 hectares). This result cannot absolutely be taken as a landmark for management purpose. Indeed, using a Translog model at this purpose is quite unreliable when the projection goes that far deviates to this extent from the observed range. However, it is of interest to note that at 7900 hectares the AC value, 213€/Ha, is quite close to value calculated at 1902 hectares, 230 €/ha.
See Table 2. Watering intensity is an output variable and its elasticity resulted not significantly different from zero. It means that Operating costs (AC and MC) do not vary with watering intensity.
The ranges of percentage variation in watering intensity in Table 3 are arbitrary, and can be modified to meet specific needs.
The estimates are unreliable in this regard; consequently, we preferred not to make interpretations regarding the economics of the situation. To improve the reliability of these estimates, it would be necessary to perform a more detailed survey of the technical data and to obtain a greater number of observations.
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Acknowledgements
This study was performed as part of the Agroscenari Research Project, funded by the Italian Ministry of Agriculture (MiPAAF), and PRIN 2008, funded by the Italian Ministry of Education (MIUR).
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Dono, G., Giraldo, L. & Severini, S. The Cost of Irrigation Water Delivery: An Attempt to Reconcile the Concepts of Cost and Efficiency. Water Resour Manage 26, 1865–1877 (2012). https://doi.org/10.1007/s11269-012-9991-6
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DOI: https://doi.org/10.1007/s11269-012-9991-6