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Intensive and extensive margin adjustments to water scarcity in France's Cereal Belt

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  • Nina Graveline
  • Pierre Mérel

Abstract

Efficient water management in agriculture is becoming critical due to increasing environmental constraints and global food and bio-energy demands. Farmers may respond to increased water scarcity along three main adjustment margins: a move towards rain-fed agriculture (super-extensive margin) or towards less water-intensive crops (extensive margin), and a reduction in water intensity for irrigated crops (intensive margin). Using a positive mathematical programming model of regional supply calibrated to economic and agronomic information, we decompose the total effect of reduced water availability on these adjustment margins in Beauce, a productive cereal region that relies on a groundwater resource to meet its irrigation needs. For realistic water scarcity scenarios, 57 per cent of the total response is attributable to super-extensive margin adjustments. The extensive margin represents 28 per cent of the total response, while the intensive margin accounts for 15 per cent. Crop-level analysis reveals more subtle adaptation patterns.

Suggested Citation

  • Nina Graveline & Pierre Mérel, 2014. "Intensive and extensive margin adjustments to water scarcity in France's Cereal Belt," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 41(5), pages 707-743.
    • Handle: RePEc:oup:erevae:v:41:y:2014:i:5:p:707-743.
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    File URL: http://hdl.handle.net/10.1093/erae/jbt039
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    Cited by:

    1. Wolfgang Britz & Linda Arata, 2019. "Econometric mathematical programming: an application to the estimation of costs and risk preferences at farm level," Agricultural Economics, International Association of Agricultural Economists, vol. 50(2), pages 191-206, March.
    2. Humblot, Pierre & Jayet, Pierre-Alain & Petsakos, Athanasios, 2017. "Farm-level bio-economic modeling of water and nitrogen use: Calibrating yield response functions with limited data," Agricultural Systems, Elsevier, vol. 151(C), pages 47-60.
    3. Zamani, Omid & Grundmann, Philipp & Libra, Judy A. & Nikouei, Alireza, 2019. "Limiting and timing water supply for agricultural production – The case of the Zayandeh-Rud River Basin, Iran," Agricultural Water Management, Elsevier, vol. 222(C), pages 322-335.
    4. Aghabeygi, Mona & Louhichi, Kamel & Gomez y Paloma, Sergio, 2022. "Impacts of fertilizer subsidy reform options in Iran: an assessment using a Regional Crop Programming model," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(1), April.
    5. Pierre-Alain Jayet & Delphine Barberis & Pierre Humblot & Anna Lungarska, 2018. "Spatializing the results of a bioeconomic model on water demand for irrigation needs [Spatialisation de la demande en eau d’irrigation estimée par un modèle bioéconomique]," Post-Print hal-02617894, HAL.
    6. Agudo-Domínguez, Alberto & Pérez-Blanco, C. Dionisio & Gil-García, Laura & Ortega, José Antonio & Dasgupta, Shouro, 2022. "Climate-sensitive hydrological drought insurance for irrigated agriculture under deep uncertainty. Insightful results from the Cega River Basin in Spain," Agricultural Water Management, Elsevier, vol. 274(C).
    7. José M. Rodríguez-Flores & Jorge A. Valero Fandiño & Spencer A. Cole & Keyvan Malek & Tina Karimi & Harrison B. Zeff & Patrick M. Reed & Alvar Escriva-Bou & Josué Medellín-Azuara, 2022. "Global Sensitivity Analysis of a Coupled Hydro-Economic Model and Groundwater Restriction Assessment," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 36(15), pages 6115-6130, December.
    8. Sapino, Francesco & Pérez-Blanco, C. Dionisio & Gutiérrez-Martín, Carlos & García-Prats, Alberto & Pulido-Velazquez, Manuel, 2022. "Influence of crop-water production functions on the expected performance of water pricing policies in irrigated agriculture," Agricultural Water Management, Elsevier, vol. 259(C).
    9. Manning, Dale T. & Lurbé, Salvador & Comas, Louise H. & Trout, Thomas J. & Flynn, Nora & Fonte, Steven J., 2018. "Economic viability of deficit irrigation in the Western US," Agricultural Water Management, Elsevier, vol. 196(C), pages 114-123.
    10. Bruno, Ellen M. & Jessoe, Katrina, 2021. "Missing markets: Evidence on agricultural groundwater demand from volumetric pricing," Journal of Public Economics, Elsevier, vol. 196(C).
    11. Möhring, Niklas & Dalhaus, Tobias & Enjolras, Geoffroy & Finger, Robert, 2020. "Crop insurance and pesticide use in European agriculture," Agricultural Systems, Elsevier, vol. 184(C).
    12. Zheng, Yanan & Goodhue, Rachael E., 2022. "Intensive or Extensive Margin Effects? Growers’ Responses to the Restriction of High-Volatile Organic Compound (VOC) Pesticide Products in the San Joaquin Valley, California," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322085, Agricultural and Applied Economics Association.
    13. Feike, Til & Henseler, Martin, 2017. "Multiple Policy Instruments for Sustainable Water Management in Crop Production - A Modeling Study for the Chinese Aksu-Tarim Region," Ecological Economics, Elsevier, vol. 135(C), pages 42-54.
    14. Dietrich Earnhart & Nathan P. Hendricks, 2023. "Adapting to water restrictions: Intensive versus extensive adaptation over time differentiated by water right seniority," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(5), pages 1458-1490, October.
    15. King, Darran A. & Meyer, Wayne S. & Connor, Jeffery D., 2019. "Interactive land use strategic assessment: An assessment tool for irrigation profitability under climate uncertainty," Agricultural Water Management, Elsevier, vol. 224(C), pages 1-1.
    16. Galioto, Francesco & Battilani, Adriano, 2021. "Agro-economic simulation for day by day irrigation scheduling optimisation," Agricultural Water Management, Elsevier, vol. 248(C).
    17. Yan, Tingting & Wang, Jinxia & Huang, Jikun, 2015. "Urbanization, agricultural water use, and regional and national crop production in China," Ecological Modelling, Elsevier, vol. 318(C), pages 226-235.
    18. Delphine Barberis & Ines Chiadmi & Pierre Humblot & Pierre-Alain Jayet & Anna Lungarska & Maxime Ollier, 2021. "Climate Change and Irrigation Water: Should the North/South Hierarchy of Impacts on Agricultural Systems Be Reconsidered? [Changement climatique et eau d'irrigation : La hiérarchie Nord/Sud des imp," Post-Print hal-03152273, HAL.
    19. Prasenjit N. Ghosh & Ruiqing Miao & Emir Malikov, 2023. "Crop insurance premium subsidy and irrigation water withdrawals in the western United States," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 48(4), pages 968-992, October.
    20. Kamel Louhichi & Aymeric Ricome & Sergio Gomez y Paloma, 2022. "Impacts of agricultural taxation in Sub‐Saharan Africa: Insights from agricultural produce cess in Tanzania," Agricultural Economics, International Association of Agricultural Economists, vol. 53(5), pages 671-686, September.
    21. Lee, Hwarang & Eom, Jiyong & Cho, Cheolhung & Koo, Yoonmo, 2019. "A bottom-up model of industrial energy system with positive mathematical programming," Energy, Elsevier, vol. 173(C), pages 679-690.
    22. Aldaya, Maite M. & Gutiérrez-Martín, Carlos & Espinosa-Tasón, Jaime & Ederra, Idoia & Sánchez, Mercedes, 2023. "The impact of the territorial gradient and the irrigation water price on agricultural production along the first phase of the Navarra Canal in Spain," Agricultural Water Management, Elsevier, vol. 281(C).

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