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Value of Irrigation Water in Guadalquivir Basin (Spain) by Residual Value Method

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  • Julio Berbel
  • M. Mesa-Jurado
  • Juan Pistón

Abstract

This paper presents an application of residual value techniques to the economic analysis of irrigation water at the basin level for the Guadalquivir River (Southern Spain). The methodology is simple; the results are robust and consistent with alternative method findings. The average residual value in the basin is 0.31 €/m 3 and according to the to Residual Value Method, the distribution of total Gross Value Added (GVA) of irrigated land is distributed between the different factors of production as follows: (i) water, 62% of GVA; (ii) land, 20% GVA (from rain-fed productivity), (iii) return to man-made capital, 5% GVA; and finally (iv) the pair ‘management + family-labour’ gets 13% of total irrigation GVA. The paper illustrates the use of this method for the whole basin and it shows that it may offer promise for supporting sustainable water management at the basin (or the local) scale. It may be used for the implementation of the Water Framework Directive. Copyright Springer Science+Business Media B.V. 2011

Suggested Citation

  • Julio Berbel & M. Mesa-Jurado & Juan Pistón, 2011. "Value of Irrigation Water in Guadalquivir Basin (Spain) by Residual Value Method," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(6), pages 1565-1579, April.
    • Handle: RePEc:spr:waterr:v:25:y:2011:i:6:p:1565-1579
    DOI: 10.1007/s11269-010-9761-2
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    Cited by:

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    4. 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.
    5. Tesfaye, Abonesh & Wolanios, Nitsuhe & Brouwer, Roy, 2016. "Estimation of the economic value of the ecosystem services provided by the Blue Nile Basin in Ethiopia," Ecosystem Services, Elsevier, vol. 17(C), pages 268-277.
    6. Buttinelli, Rebecca & Cortignani, Raffaele & Caracciolo, Francesco, 2024. "Irrigation water economic value and productivity: An econometric estimation for maize grain production in Italy," Agricultural Water Management, Elsevier, vol. 295(C).
    7. Alcon, Francisco & Zabala, José A. & Martínez-García, Victor & Albaladejo, José A. & López-Becerra, Erasmo I. & de-Miguel, María D. & Martínez-Paz, José M., 2022. "The social wellbeing of irrigation water. A demand-side integrated valuation in a Mediterranean agroecosystem," Agricultural Water Management, Elsevier, vol. 262(C).
    8. Iglesias, Ana & Garrote, Luis, 2015. "Adaptation strategies for agricultural water management under climate change in Europe," Agricultural Water Management, Elsevier, vol. 155(C), pages 113-124.
    9. V. Kanakoudis & S. Tsitsifli & T. Azariadi, 2015. "Overview of the River Basin Management Plans Developed in Greece Under the Context of the Water Framework Directive 2000/60/EC Focusing on the Economic Analysis," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 29(9), pages 3149-3174, July.
    10. Espinosa-Tasón, Jaime & Berbel, Julio & Gutiérrez-Martín, Carlos, 2020. "Energized water: Evolution of water-energy nexus in the Spanish irrigated agriculture, 1950–2017," Agricultural Water Management, Elsevier, vol. 233(C).
    11. Lozano, David & Ruiz, Natividad & Gavilán, Pedro, 2016. "Consumptive water use and irrigation performance of strawberries," Agricultural Water Management, Elsevier, vol. 169(C), pages 44-51.
    12. Soto-García, M. & Martínez-Alvarez, V. & García-Bastida, P.A. & Alcon, F. & Martin-Gorriz, B., 2013. "Effect of water scarcity and modernisation on the performance of irrigation districts in south-eastern Spain," Agricultural Water Management, Elsevier, vol. 124(C), pages 11-19.
    13. Mirra, Laura & D'Urso, Guido & Giannoccaro, Giacomo & Cicia, Gianni & Del Giudice, Teresa, 2021. "Water Pricing in Agriculture following the Water Framework Directive: A Systematic Review of the Literature," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 12(04), December.
    14. Ana Iglesias & Berta Sánchez & Luis Garrote & Iván López, 2017. "Towards Adaptation to Climate Change: Water for Rice in the Coastal Wetlands of Doñana, Southern Spain," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(2), pages 629-653, January.
    15. M. E. Qureshi & M. D. Ahmad & S. M. Whitten & A. Reeson & M. Kirby, 2018. "Impact of Climate Variability Including Drought on the Residual Value of Irrigation Water Across the Murray–Darling Basin, Australia," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 1-25, January.
    16. Muchara, B. & Ortmann, G. & Mudhara, M. & Wale, E., 2016. "Irrigation water value for potato farmers in the Mooi River Irrigation Scheme of KwaZulu-Natal, South Africa: A residual value approach," Agricultural Water Management, Elsevier, vol. 164(P2), pages 243-252.
    17. Najihah Dor & Syafalni Syafalni & Ismail Abustan & Mohd Rahman & Mohd Nazri & Roslanzairi Mostafa & Lakam Mejus, 2011. "Verification of Surface-Groundwater Connectivity in an Irrigation Canal Using Geophysical, Water Balance and Stable Isotope Approaches," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(11), pages 2837-2853, September.
    18. Ziolkowska, Jadwiga R., 2015. "Shadow price of water for irrigation—A case of the High Plains," Agricultural Water Management, Elsevier, vol. 153(C), pages 20-31.
    19. Reddy, Sheila M.W. & McDonald, Robert I. & S. Maas, Alexander & Rogers, Anthony & Girvetz, Evan H. & North, Jeffrey & Molnar, Jennifer & Finley, Tim & Leathers, Gená & L. DiMuro, Johnathan, 2015. "Finding solutions to water scarcity: Incorporating ecosystem service values into business planning at The Dow Chemical Company’s Freeport, TX facility," Ecosystem Services, Elsevier, vol. 12(C), pages 94-107.
    20. V. Pande & V. Sharda & R. Kurothe & D. Sena & S. Tiwari, 2012. "An Empirical Assessment of On-Farm Water Productivity using Groundwater in a Semi-Arid Indian Watershed," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(2), pages 475-498, January.
    21. Pablo Campos & José L. Oviedo & Paola Ovando & Alejandro Álvarez & Bruno Mesa & Alejandro Caparrós, 2019. "Agroforestry Accounting System For Measuring Environmental Incomes At Social Prices: Application To Holm Oak Open Woodlands In Andalusia-Spain," Working Papers 1906, Instituto de Políticas y Bienes Públicos (IPP), CSIC.
    22. Cortignani, Raffaele & Dell’Unto, Davide & Dono, Gabriele, 2018. "Recovering the costs of irrigation water with different pricing methods: Insights from a Mediterranean case study," Agricultural Water Management, Elsevier, vol. 199(C), pages 148-156.
    23. Ziolkowska, Jad R., 2018. "Profitability of Irrigation and Value of Water in the Southern High Plains," 2018 Annual Meeting, August 5-7, Washington, D.C. 274355, Agricultural and Applied Economics Association.
    24. Berbel, Julio & Gutiérrez-Martín, Carlos, 2015. "Farmer’s subjective elicited water response function for intensive olives and compromise programming method for irrigation supply decision," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 15(02).
    25. Mesa-Jurado, Maria A. & Martin-Ortega, Julia & Ruto, Eric & Berbel, Julio, 2011. "The economic value of guaranteed water supply for irrigation under scarcity conditions," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114650, European Association of Agricultural Economists.

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