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Can Nonlinear Water Pricing Help to Mitigate Drought Effects in Temperate Countries?

Author

Listed:
  • Jean-Philippe Terreaux

    (UR ETBX - Environnement, territoires et infrastructures - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Mabel Tidball

    (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)

Abstract

The notion of drought is most often associated with the aridity of landscapes andvegetation. But a green landscape can hide a frequent imbalance between wateravailability and the quantity necessary to maintain rivers in a suitable state, tosatisfy different water needs. This is the case, for example, in the French regioncalled New Aquitaine. Regularly, "drought" crisis committees are set up there tolimit water use through administrative constraints, which is technically difficultand costly for many, and with an overall unsatisfactory situation from rural areas tothe coast. But in summer, water consumption is mainly due to irrigation. Somewater resource managers have consequently set up an original non-linear waterpricing system for irrigation to achieve several objectives: above all, to limit waterconsumption in order to respect a minimum flow rate in rivers, to anticipate watersupply-demand imbalances before agricultural plantations are made, to allocatewater to the users who value it best, to recover water supply costs, to be transparentand sufficiently simple in its application to be acceptable. In this chapter, wepropose to describe one of such original pricing systems, as well as some of its mainmathematical properties and its practical interests

Suggested Citation

  • Jean-Philippe Terreaux & Mabel Tidball, 2020. "Can Nonlinear Water Pricing Help to Mitigate Drought Effects in Temperate Countries?," Post-Print halshs-02283100, HAL.
  • Handle: RePEc:hal:journl:halshs-02283100
    DOI: 10.5772/intechopen.86529
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-02283100
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    References listed on IDEAS

    as
    1. Janne Artell & Anni Huhtala, 2017. "What Are the Benefits of the Water Framework Directive? Lessons Learned for Policy Design from Preference Revelation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(4), pages 847-873, December.
    2. Garcia, Serge & Reynaud, Arnaud, 2004. "Estimating the benefits of efficient water pricing in France," Resource and Energy Economics, Elsevier, vol. 26(1), pages 1-25, March.
    3. Mabel Tidball & Jean-Philippe Terreaux, 2008. "Information revelation through irrigation water pricing using volume reservations," Working Papers 08-14, LAMETA, Universtiy of Montpellier, revised Sep 2008.
    4. Jean-Philippe Terreaux & Mabel Tidball, 2008. "Water sharing among competing farmers in temperate climate: a study of different pricing mechanisms [Partage de l'eau entre agriculteurs concurrents en climat tempéré : une étude des mécanismes de ," Post-Print hal-02816392, HAL.
    5. Koji Miyawaki & Yasuhiro Omori & Akira Hibiki, 2016. "Exact Estimation of Demand Functions under Block-Rate Pricing," Econometric Reviews, Taylor & Francis Journals, vol. 35(3), pages 311-343, March.
    6. Yoro Sidibé & Jean-Philippe Terreaux & Mabel Tidball & Arnaud Reynaud, 2012. "Coping with drought with innovative pricing systems: the case of two irrigation water management companies in France," Agricultural Economics, International Association of Agricultural Economists, vol. 43, pages 141-155, November.
    7. Johansson, Robert C., 2000. "Pricing irrigation water : a literature survey," Policy Research Working Paper Series 2449, The World Bank.
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    Keywords

    drought; irrigation; nonlinear pricing; environment; mathematical economics;
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