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

Luca Giraldo, Raffaele Cortignani, Gabriele Dono
2014 Water  
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
more » ... 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.
doi:10.3390/w6051204 fatcat:lhowoww7yfappc5ms6xvb2ifke