Observatorio de I+D+i UPM

Memorias de investigación
Communications at congresses:
Ponencia: "Analysis of public policies for an integrated water management under uncertainty"
Year:2007
Research Areas
  • Applied economics
Information
Abstract
The new Common Agricultural Policy (Luxemburg Reform 2003) strongly marked for the approach of the international trade liberalization and the Water Framework Directive (2000/60/EC Directive), represent the current policy framework regulating water use in Europe. The objective of this research is to analyze the irrigators¿ response to water pricing policies application following different agricultural policies, to assess the implementation of the full cost recovery principle of the WFD and to study the impact of the reduction of the crop prices by 10%. Specifically, the agricultural policy scenarios considered are the full and partial decoupling, taking into account the subsidy modulation. To undertake this analysis, a mathematical programming model has been developed to simulate farmers¿ behaviour under the uncertainty of climate and market variations. Empirical application of the model has been carried out in two different Irrigation Communities that characterize agrarian systems of the region of Castilla-Leon in the northern central plateau of Spain. Results show that a reduction in crop prices will have significant effects on international trade and is likely to produce a reduction in farm intensification and hence a beneficial effect on the environment but will involve negative socio-economic impacts. The new decoupled CAP will not lead to drastic changes but will have negative repercussions on farmers¿ income. The integration of agricultural and water policies could have distinct effects in different Water User Associations. Attaining cost recovery targets could have negative effects on farmers¿ income and might question the viability of some irrigated farming systems in Spain. However, it will be more cost-effective in the areas of larger farms that can benefit from the economies of scales. Key words: agricultural policies, international trade, cost recovery, mathematical programming model, risk analysis.
International
No
Congress
VI Congreso Español de Economía Agraria , De la Economía Agraria a la Economía Rural y la Agroalimentaria
960
Place
Albacete, España
Reviewers
No
ISBN/ISSN
1
Start Date
19/09/2007
End Date
21/09/2007
From page
To page
Participants
  • Autor: Irene Blanco Gutierrez (UPM)
  • Autor: Consuelo Varela Ortega (UPM)
Research Group, Departaments and Institutes related
  • Creador: Grupo de Investigación: Economía Agraria y Gestión de los Recursos Naturales
  • Departamento: Economía y Ciencias Sociales Agrarias
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