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Bio-economic modelling to assess the impact of water pricing policies at the farm level in the Oum Zessar watershed, southern Tunisia

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  • Jeder, Houcine
  • Sghaier, Mongi
  • Louhichi, Kamel
  • Reidsma, Pytrik

Abstract

For integrated assessment at farm level, the Farm System SIMulator model (FSSIM) was used. FSSIM is a bio-economic model developed for the European context, and was adapted and tested for Tunisian conditions to assess, ex-ante, impacts of water pricing policies at the farm level to the year 2015. The results show that all farm types are strongly dependent on the water pricing policy. Farmers that have private irrigation systems and pay for pumping mainly, are more sensitive to the progressive increase of irrigation water costs compared to farms that obtain water from public irrigation systems, who pay for the amount of water received. A sensitivity analysis showed that increasing the water price with more than 17% is not advisable to local decision makers, because the net income continued to decline, while the water consumption remained stable with further increases. Hence, there is no further gain in terms of water saving. Overall, intensive agricultural systems with private irrigation systems seem more vulnerable and unsustainable and therefore the extension of public irrigation systems and semi-intensive agriculture is recommendable to improve the sustainability of agriculture in this arid zone.

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  • Jeder, Houcine & Sghaier, Mongi & Louhichi, Kamel & Reidsma, Pytrik, 2014. "Bio-economic modelling to assess the impact of water pricing policies at the farm level in the Oum Zessar watershed, southern Tunisia," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 15(2), pages 1-19.
    • Handle: RePEc:ags:aergaa:253681
    DOI: 10.22004/ag.econ.253681
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    2. Jeder, Houcine & Hamza, Emna Ben & Belhouchette, Hatem & Mzoughi, Aida, 2019. "Resilience of irrigated agricultural systems to climate change challenges in central-eastern region of Tunisia," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 0(Issue 1).
    3. Alfonso Expósito & Julio Berbel, 2017. "Why Is Water Pricing Ineffective for Deficit Irrigation Schemes? A Case Study in Southern Spain," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(3), pages 1047-1059, February.
    4. Liu, Xuan & van Kooten, Gerrit Cornelis & Duan, Jun, 2020. "Calibration of agricultural risk programming models using positive mathematical programming," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(3), July.
    5. Xuan Liu & Jun Duan & G. Cornelis van Kooten, 2018. "The impact of changes in the AgriStability program on crop activities: A farm modeling approach," Agribusiness, John Wiley & Sons, Ltd., vol. 34(3), pages 650-667, June.

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