IDEAS home Printed from https://ideas.repec.org/a/eee/agiwat/v272y2022ics0378377422004139.html
   My bibliography  Save this article

Design of an incentive-based tool for effective water saving policy in agriculture

Author

Listed:
  • Giannoccaro, Giacomo
  • Roselli, Luigi
  • Sardaro, Ruggiero
  • de Gennaro, Bernardo C.

Abstract

This study proposes a novel agri-environmental payment scheme aimed at saving irrigation water. The design incorporates an outcomes-based reward system, ensuring effective savings of water volumes in on-farm uses. A choice experiment (CE) was conducted with 259 farmers, in a pilot study of a water-stressed region with Mediterranean climate. Values for each attribute were estimated using the Random Parameter Logit Model. The environmental payment scheme resulted as receiving good acceptance by the interviewees. The duration of the commitment has the highest relevance in the farmers’ choice behaviour, followed by the water savings effort. In general, the findings show that farmers are willing to save water in response to the tested payment scheme. Based on the significance of covariates, however, the variable of the farm’s crop specialisation is critical in the farmer’s choice. The main findings suggest that it is advisable to target the payment scheme based on crop profitability, territorial dimension, and taking into account the groundwater salinity map.

Suggested Citation

  • Giannoccaro, Giacomo & Roselli, Luigi & Sardaro, Ruggiero & de Gennaro, Bernardo C., 2022. "Design of an incentive-based tool for effective water saving policy in agriculture," Agricultural Water Management, Elsevier, vol. 272(C).
    • Handle: RePEc:eee:agiwat:v:272:y:2022:i:c:s0378377422004139
    DOI: 10.1016/j.agwat.2022.107866
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0378377422004139
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.agwat.2022.107866?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kahil, Mohamed Taher & Connor, Jeffery D. & Albiac, Jose, 2015. "Efficient water management policies for irrigation adaptation to climate change in Southern Europe," Ecological Economics, Elsevier, vol. 120(C), pages 226-233.
    2. Guerrero-Baena, M. Dolores & Villanueva, Anastasio J. & Gómez-Limón, José A. & Glenk, Klaus, 2019. "Willingness to pay for improved irrigation water supply reliability: An approach based on probability density functions," Agricultural Water Management, Elsevier, vol. 217(C), pages 11-22.
    3. Salazar-Ordóñez, Melania & Rodríguez-Entrena, Macario & Villanueva, Anastasio J., 2021. "Exploring the commodification of biodiversity using olive oil producers’ willingness to accept," Land Use Policy, Elsevier, vol. 107(C).
    4. Anastasio J. Villanueva & Klaus Glenk & Macario Rodríguez-Entrena, 2017. "Protest Responses and Willingness to Accept: Ecosystem Services Providers’ Preferences towards Incentive-Based Schemes," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 801-821, September.
    5. Gatta, Giuseppe & Libutti, Angela & Gagliardi, Anna & Beneduce, Luciano & Brusetti, Lorenzo & Borruso, Luigimaria & Disciglio, Grazia & Tarantino, Emanuele, 2015. "Treated agro-industrial wastewater irrigation of tomato crop: Effects on qualitative/quantitative characteristics of production and microbiological properties of the soil," Agricultural Water Management, Elsevier, vol. 149(C), pages 33-43.
    6. Barreiro-Hurle, Jesus & Espinosa-Goded, Maria & Martinez-Paz, Jose Miguel & Perni, Angel, 2018. "Choosing not to choose: A meta-analysis of status quo effects in environmental valuations using choice experiments," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 18(01), June.
    7. Portoghese, Ivan & Giannoccaro, Giacomo & Giordano, Raffaele & Pagano, Alessandro, 2021. "Modeling the impacts of volumetric water pricing in irrigation districts with conjunctive use of surface and groundwater resources," Agricultural Water Management, Elsevier, vol. 244(C).
    8. Mukherjee, Monobina & Schwabe, Kurt A., 2014. "Where's the salt? A spatial hedonic analysis of the value of groundwater to irrigated agriculture," Agricultural Water Management, Elsevier, vol. 145(C), pages 110-122.
    9. Laura Mirra & Bernardo Corrado de Gennaro & Giacomo Giannoccaro, 2021. "Farmer Evaluation of Irrigation Services. Collective or Self-Supplied?," Land, MDPI, vol. 10(4), pages 1-15, April.
    10. Sardaro, Ruggiero & Faccilongo, Nicola & Roselli, Luigi, 2019. "Wind farms, farmland occupation and compensation: Evidences from landowners’ preferences through a stated choice survey in Italy," Energy Policy, Elsevier, vol. 133(C).
    11. Vergamini, Daniele & Viaggi, Davide & Raggi, Meri, 2020. "Evaluating the Potential Contribution of Multi-Attribute Auctions to Achieve Agri-Environmental Targets and Efficient Payment Design," Ecological Economics, Elsevier, vol. 176(C).
    12. Valeria Piñeiro & Joaquín Arias & Jochen Dürr & Pablo Elverdin & Ana María Ibáñez & Alison Kinengyere & Cristian Morales Opazo & Nkechi Owoo & Jessica R. Page & Steven D. Prager & Maximo Torero, 2020. "A scoping review on incentives for adoption of sustainable agricultural practices and their outcomes," Nature Sustainability, Nature, vol. 3(10), pages 809-820, October.
    13. Greene, William H. & Hensher, David A., 2003. "A latent class model for discrete choice analysis: contrasts with mixed logit," Transportation Research Part B: Methodological, Elsevier, vol. 37(8), pages 681-698, September.
    14. Daniel McFadden, 1986. "The Choice Theory Approach to Market Research," Marketing Science, INFORMS, vol. 5(4), pages 275-297.
    15. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    16. Mamine, Fateh & Fares, M'hand & Minviel, Jean Joseph, 2020. "Contract Design for Adoption of Agrienvironmental Practices: A Meta-analysis of Discrete Choice Experiments," Ecological Economics, Elsevier, vol. 176(C).
    17. Alban Lika & Francesco Galioto & Davide Viaggi, 2017. "Water Authorities’ Pricing Strategies to Recover Supply Costs in the Absence of Water Metering for Irrigated Agriculture," Sustainability, MDPI, vol. 9(12), pages 1-16, November.
    18. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
    19. Fabio Bartolini & Daniele Vergamini, 2019. "Understanding the Spatial Agglomeration of Participation in Agri-Environmental Schemes: The Case of the Tuscany Region," Sustainability, MDPI, vol. 11(10), pages 1-18, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yang, Yang & He, Weijun & Jiang, Ningye & Xu, Shasha & Ramsey, Thomas Stephen & Yuan, Liang, 2024. "The intertemporal choice study of individual water-saving irrigation construction under three water pricing and subsidy scenarios," Agricultural Water Management, Elsevier, vol. 295(C).
    2. Pauline Pedehour & Marianne Lefebvre, 2023. "Combining digital technologies and incentives for water conservation: A Q-method study to understand preferences of French irrigators," Post-Print hal-04626643, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mamine, Fateh & Fares, M'hand & Minviel, Jean Joseph, 2020. "Contract Design for Adoption of Agrienvironmental Practices: A Meta-analysis of Discrete Choice Experiments," Ecological Economics, Elsevier, vol. 176(C).
    2. Christoph Schulze & Katarzyna Zagórska & Kati Häfner & Olimpia Markiewicz & Mikołaj Czajkowski & Bettina Matzdorf, 2024. "Using farmers' ex ante preferences to design agri‐environmental contracts: A systematic review," Journal of Agricultural Economics, Wiley Blackwell, vol. 75(1), pages 44-83, February.
    3. Haghani, Milad & Bliemer, Michiel C.J. & Hensher, David A., 2021. "The landscape of econometric discrete choice modelling research," Journal of choice modelling, Elsevier, vol. 40(C).
    4. Guerrero-Baena, M. Dolores & Villanueva, Anastasio J. & Gómez-Limón, José A. & Glenk, Klaus, 2019. "Willingness to pay for improved irrigation water supply reliability: An approach based on probability density functions," Agricultural Water Management, Elsevier, vol. 217(C), pages 11-22.
    5. Ruggiero Sardaro & Nicola Faccilongo & Francesco Contò & Piermichele La Sala, 2021. "Adaption Actions to Cope with Climate Change: Evidence from Farmers’ Preferences on an Agrobiodiversity Conservation Programme in the Mediterranean Area," Sustainability, MDPI, vol. 13(11), pages 1-17, May.
    6. Sardaro, Ruggiero & La Sala, Piermichele & De Pascale, Gianluigi & Faccilongo, Nicola, 2021. "The conservation of cultural heritage in rural areas: Stakeholder preferences regarding historical rural buildings in Apulia, southern Italy," Land Use Policy, Elsevier, vol. 109(C).
    7. Giacomo Giannoccaro & Ruggiero Sardaro & Rossella de Vito & Luigi Roselli & Bernardo C. de Gennaro, 2020. "Politiche di gestione della risorsa idrica sotterranea a fini irrigui. Analisi delle preferenze degli agricoltori," Economia agro-alimentare, FrancoAngeli Editore, vol. 22(2), pages 1-27.
    8. Lapierre, Margaux & Le Velly, Gwenolé & Bougherara, Douadia & Préget, Raphaële & Sauquet, Alexandre, 2023. "Designing agri-environmental schemes to cope with uncertainty," Ecological Economics, Elsevier, vol. 203(C).
    9. Granado-Díaz, Rubén & Villanueva, Anastasio J. & Gómez-Limón, José A., 2022. "Willingness to accept for rewilding farmland in environmentally sensitive areas," Land Use Policy, Elsevier, vol. 116(C).
    10. Joan L. Walker & Moshe Ben-Akiva, 2011. "Advances in Discrete Choice: Mixture Models," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 8, Edward Elgar Publishing.
    11. Feil, J.-H. & Anastassiadis, F. & Mußhoff, O. & Schilling, P., 2015. "Analysing Farmers’ Use of Price Hedging Instruments: An Experimental Approach," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 50, March.
    12. Zhanguo Zhu & Qinyuan Shen & Zhifeng Gao, 2022. "Consumer choices in agricultural markets with multitier collective labels and private brands," Agribusiness, John Wiley & Sons, Ltd., vol. 38(4), pages 905-922, October.
    13. Nguyen Tien Thong & Hans Stubbe Solgaard & Wolfgang Haider & Eva Roth & Lars Ravn†Jonsen, 2018. "Using labeled choice experiments to analyze demand structure and market position among seafood products," Agribusiness, John Wiley & Sons, Ltd., vol. 34(2), pages 163-189, March.
    14. Alcon, Francisco & Zabala, José A. & Martínez-Paz, José M., 2022. "Assessment of social demand heterogeneity to inform agricultural diffuse pollution mitigation policies," Ecological Economics, Elsevier, vol. 191(C).
    15. Salazar-Ordóñez, Melania & Rodríguez-Entrena, Macario & Villanueva, Anastasio J., 2021. "Exploring the commodification of biodiversity using olive oil producers’ willingness to accept," Land Use Policy, Elsevier, vol. 107(C).
    16. De Bauw, Michiel & Franssens, Samuel & Vranken, Liesbet, 2022. "Trading off environmental attributes in food consumption choices," Food Policy, Elsevier, vol. 112(C).
    17. Justin Visagie & Dorrit Posel, 2013. "A reconsideration of what and who is middle class in South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 30(2), pages 149-167, June.
    18. Sardaro, Ruggiero & Faccilongo, Nicola & Roselli, Luigi, 2019. "Wind farms, farmland occupation and compensation: Evidences from landowners’ preferences through a stated choice survey in Italy," Energy Policy, Elsevier, vol. 133(C).
    19. Mohammed H. Alemu & Søren B. Olsen & Suzanne E. Vedel & Kennedy O. Pambo & Victor O. Owino, 2015. "Consumer acceptance and willingness to pay for edible insects as food in Kenya: the case of white winged termites," IFRO Working Paper 2015/10, University of Copenhagen, Department of Food and Resource Economics.
    20. Kragt, Marit E. & Lynch, Brendan & Llewellyn, Rick S. & Umberger, Wendy J., 2019. "What farmer types are most likely to adopt joint venture farm business structures?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(4), October.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:agiwat:v:272:y:2022:i:c:s0378377422004139. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/agwat .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.