Water 2014, 6(5), 1204-1220; doi:10.3390/w6051204
Article

Simulating Volumetric Pricing for Irrigation Water Operational Cost Recovery under Complete and Perfect Information

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Received: 30 January 2014; in revised form: 11 April 2014 / Accepted: 22 April 2014 / Published: 7 May 2014
(This article belongs to the Special Issue Water Policy, Productivity and Economic Efficiency)
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract: This study evaluated the implementation of a volumetric and cost-recovery pricing method for irrigation water under symmetric information conditions without the inclusion of implementation costs. The study was carried out in two steps. First, a cost function was estimated for irrigation water supplied by a water user association to a typical Mediterranean agricultural area, based on a translog function. Second, the economic impact of a pricing method designed according to this cost function was simulated using a mathematical programming territorial model for the same agricultural area. The outcomes were compared with those for the current pricing method. The impacts of this pricing method are discussed in terms of its neutral effects on total farm income and, conversely, the importance of the redistributive effects.
Keywords: water pricing; water distribution cost; irrigation water management; volumetric pricing; water economics
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MDPI and ACS Style

Giraldo, L.; Cortignani, R.; Dono, G. Simulating Volumetric Pricing for Irrigation Water Operational Cost Recovery under Complete and Perfect Information. Water 2014, 6, 1204-1220.

AMA Style

Giraldo L, Cortignani R, Dono G. Simulating Volumetric Pricing for Irrigation Water Operational Cost Recovery under Complete and Perfect Information. Water. 2014; 6(5):1204-1220.

Chicago/Turabian Style

Giraldo, Luca; Cortignani, Raffaele; Dono, Gabriele. 2014. "Simulating Volumetric Pricing for Irrigation Water Operational Cost Recovery under Complete and Perfect Information." Water 6, no. 5: 1204-1220.

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