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Water Rates And The Responsibilities Of Direct, Indirect And End-Users In Spain

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  • Ignacio Cazcarro
  • Rosa Duarte
  • Julio Sanchez Choliz
  • Cristina Sarasa

Abstract

Irrigation is the main user of water in Spain, and the price paid for this resource has long been lower than its cost. The recent EU Water Framework Directive requires that all costs be recovered, but application has had perverse effects. In some cases, farms have become economically unviable, while in others, cultivation has intensified and water consumption has increased. This paper applies a slightly modified version of the computable general equilibrium model developed by the International Food Policy Research Institute (Lofgren et al., 2002), to a SAM (Social Accounting Matrix) of the province of Huesca in north-eastern Spain. The model disaggregates the agricultural sectors into irrigated and unirrigated farming, taking into account the improvements in irrigation efficiency. Within this framework, we analyse different payment scenarios affecting direct users, exporters and end-users in order to examine user responsibilities, the impact of international markets and macroeconomic effects on agriculture and industry in Spain.

Suggested Citation

  • Ignacio Cazcarro & Rosa Duarte & Julio Sanchez Choliz & Cristina Sarasa, 2011. "Water Rates And The Responsibilities Of Direct, Indirect And End-Users In Spain," Economic Systems Research, Taylor & Francis Journals, vol. 23(4), pages 409-430, August.
    • Handle: RePEc:taf:ecsysr:v:23:y:2011:i:4:p:409-430
    DOI: 10.1080/09535314.2011.611794
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    References listed on IDEAS

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    1. Berck, Peter & Robinson, Sherman & Goldman, George E, 1990. "The use of computable general equilibrium models to assess water policies," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt082465zv, Department of Agricultural & Resource Economics, UC Berkeley.
    2. Ballard, Charles L. & Fullerton, Don & Shoven, John B. & Whalley, John, 2009. "A General Equilibrium Model for Tax Policy Evaluation," National Bureau of Economic Research Books, University of Chicago Press, number 9780226036335, August.
    3. Charles L. Ballard & Don Fullerton & John B. Shoven & John Whalley, 1985. "Introduction to "A General Equilibrium Model for Tax Policy Evaluation"," NBER Chapters, in: A General Equilibrium Model for Tax Policy Evaluation, pages 1-5, National Bureau of Economic Research, Inc.
    4. Timothy J. Kehoe, 1996. "Social accounting matrices and applied general equilibrium models," Working Papers 563, Federal Reserve Bank of Minneapolis.
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    Cited by:

    1. Okadera, Tomohiro & Geng, Yong & Fujita, Tsuyoshi & Dong, Huijuan & Liu, Zhu & Yoshida, Noboru & Kanazawa, Takaaki, 2015. "Evaluating the water footprint of the energy supply of Liaoning Province, China: A regional input–output analysis approach," Energy Policy, Elsevier, vol. 78(C), pages 148-157.
    2. Teotónio, Carla & Rodríguez, Miguel & Roebeling, Peter & Fortes, Patrícia, 2020. "Water competition through the ‘water-energy’ nexus: Assessing the economic impacts of climate change in a Mediterranean context," Energy Economics, Elsevier, vol. 85(C).
    3. Cristina Sarasa & Jean-Marc Philip & Julio Sánchez-Chóliz, 2013. "A tax policy strategy faces with future water availability using a dynamic CGE approach," EcoMod2013 5349, EcoMod.
    4. Okadera, Tomohiro & Chontanawat, Jaruwan & Gheewala, Shabbir H., 2014. "Water footprint for energy production and supply in Thailand," Energy, Elsevier, vol. 77(C), pages 49-56.
    5. Sánchez-Chóliz, J. & Sarasa, C., 2013. "Análisis de los recursos hídricos de Riegos del Alto Aragón (Huesca) en la primera década del siglo XXI," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 13(01).
    6. 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.
    7. Jordan Hristov & Aleksandra Martinovska-Stojcheska & Yves Surry, 2016. "The Economic Role of Water in FYR Macedonia: An Input–Output Analysis and Implications for the Western Balkan Countries," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(04), pages 1-37, December.

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