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An Econometric Analysis of Agricultural Production, Focusing on the Shadow Price of Groundwater: Policies Towards Socio-Economic Sustainability

Author

Listed:
  • Phoebe Koundouri
  • Osiel Davila

    (AUEB-RC)

  • Yannis Anastasiou

    (Athens University of Economics and Business)

  • Antonios Antypas

    (Department of Banking and Financial Management, University of Piraeus)

  • Theodoros Mavrogiorgis

    (Athens University of Economics and Business)

  • Aris Mousoulides
  • Marianna Mousoulidou
  • Katerina Vasiliou

    (Athens University of Economics and Business)

Abstract

The focus of Chapter 5 is on the agricultural sector in the Asopos catchment as it has a significant impact on the status of water in the area. In particular, the aim of the chapter is to estimate the farmers valuation of groundwater s shadow price for the region of Asopos. In order to achieve that, an agricultural micro-economic data-set from the catchment has been collected through the use of a detailed agricultural questionnaire. As it will be explained in the chapter, the questionnaire focuses on collecting information regarding cultivations, production structures and use of groundwater for irrigation. The objective of the micro-econometric analysis is to uncover patterns of groundwater use and farm efficiency. The chapter presents the derived estimates that make possible the analysis of the impact of different economic policies, -which will be used for the implementation of an optimal, sustainable and integrated water policy- on farmers profits and social welfare. The chapter finishes with policy recommendations based on the principle of socio-economic sustainability that assures both economic efficiency of farms and concludes with the estimation of groundwater for irrigation shadow price and how this can be used in the design of pumping taxes to reduce pollution and to increase farms efficiency.

Suggested Citation

  • Phoebe Koundouri & Osiel Davila & Yannis Anastasiou & Antonios Antypas & Theodoros Mavrogiorgis & Aris Mousoulides & Marianna Mousoulidou & Katerina Vasiliou, 2013. "An Econometric Analysis of Agricultural Production, Focusing on the Shadow Price of Groundwater: Policies Towards Socio-Economic Sustainability," DEOS Working Papers 1313, Athens University of Economics and Business.
    • Handle: RePEc:aue:wpaper:1313
    as

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    File URL: http://wpa.deos.aueb.gr/docs/Chapter5.pdf
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    References listed on IDEAS

    as
    1. Phoebe Koundouri & Anastasios Xepapadeas, 2004. "Estimating accounting prices for common pool natural resources: A distance function approach," DEOS Working Papers 0405, Athens University of Economics and Business.
    2. Fare, Rolf & Grosskopf, Shawna, 1990. "A distance function approach to price efficiency," Journal of Public Economics, Elsevier, vol. 43(1), pages 123-126, October.
    3. Tim Coelli & Sergio Perelman, 2000. "Technical efficiency of European railways: a distance function approach," Applied Economics, Taylor & Francis Journals, vol. 32(15), pages 1967-1976.
    4. Howe, Charles W., 2002. "Policy issues and institutional impediments in the management of groundwater: lessons from case studies," Environment and Development Economics, Cambridge University Press, vol. 7(4), pages 625-641, October.
    5. Koundouri, Phoebe, 2000. "Three approaches to measuring natural resource scarcity: theory and application to groundwater," MPRA Paper 38265, University Library of Munich, Germany.
    6. Howe, Charles W., 2002. "Policy issues and institutional impediments in the management of groundwater: lessons from case studies," Environment and Development Economics, Cambridge University Press, vol. 7(4), pages 605-616, October.
    7. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
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