Water scarcity, prices and quotas: a review of evidence on irrigation volumetric pricing

Underpricing of irrigation water is frequently identified as a primary cause of excessive use of water for irrigation. Higher prices are believed to have the potential to promote conservation. Changes in user behavior are predicated on a quantitative relationship between water charges and the volume...

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Detalles Bibliográficos
Autor principal: Molle, Francois
Formato: Journal Article
Lenguaje:Inglés
Publicado: Springer 2009
Materias:
Acceso en línea:https://hdl.handle.net/10568/40643
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author Molle, Francois
author_browse Molle, Francois
author_facet Molle, Francois
author_sort Molle, Francois
collection Repository of Agricultural Research Outputs (CGSpace)
description Underpricing of irrigation water is frequently identified as a primary cause of excessive use of water for irrigation. Higher prices are believed to have the potential to promote conservation. Changes in user behavior are predicated on a quantitative relationship between water charges and the volume use, but volumetric management is quite rare in practice. This paper reviews irrigation schemes that combine conditions of water scarcity and volumetric pricing, either at the bulk or individual level, and provides clear evidence that scarcity is almost invariably dealt with through the definition of quotas. In contrast to the large theoretical literature that has promoted price-based regulation as a key instrument of water demand management, it appears that prices are mostly used to regulate use at the margin, beyond the quota, rather than for rationing scarce water. This is an important role but one that falls short of efficiency pricing. The advantages and drawbacks of quotas are discussed, and an interpretation of why they are selected in practice is given.
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spelling CGSpace406432025-06-17T08:23:21Z Water scarcity, prices and quotas: a review of evidence on irrigation volumetric pricing Molle, Francois water scarcity water rates pricing economic aspects irrigation schemes water demand water users associations water allocation food science Underpricing of irrigation water is frequently identified as a primary cause of excessive use of water for irrigation. Higher prices are believed to have the potential to promote conservation. Changes in user behavior are predicated on a quantitative relationship between water charges and the volume use, but volumetric management is quite rare in practice. This paper reviews irrigation schemes that combine conditions of water scarcity and volumetric pricing, either at the bulk or individual level, and provides clear evidence that scarcity is almost invariably dealt with through the definition of quotas. In contrast to the large theoretical literature that has promoted price-based regulation as a key instrument of water demand management, it appears that prices are mostly used to regulate use at the margin, beyond the quota, rather than for rationing scarce water. This is an important role but one that falls short of efficiency pricing. The advantages and drawbacks of quotas are discussed, and an interpretation of why they are selected in practice is given. 2009-02 2014-06-13T14:48:06Z 2014-06-13T14:48:06Z Journal Article https://hdl.handle.net/10568/40643 en Limited Access Springer Molle, Francois. 2009. Water scarcity, prices and quotas: a review of evidence on irrigation volumetric pricing. Irrigation and Drainage Systems, 23(1):43-58. doi: https://doi.org/10.1007/s10795-009-9065-y
spellingShingle water scarcity
water rates
pricing
economic aspects
irrigation schemes
water demand
water users associations
water allocation
food science
Molle, Francois
Water scarcity, prices and quotas: a review of evidence on irrigation volumetric pricing
title Water scarcity, prices and quotas: a review of evidence on irrigation volumetric pricing
title_full Water scarcity, prices and quotas: a review of evidence on irrigation volumetric pricing
title_fullStr Water scarcity, prices and quotas: a review of evidence on irrigation volumetric pricing
title_full_unstemmed Water scarcity, prices and quotas: a review of evidence on irrigation volumetric pricing
title_short Water scarcity, prices and quotas: a review of evidence on irrigation volumetric pricing
title_sort water scarcity prices and quotas a review of evidence on irrigation volumetric pricing
topic water scarcity
water rates
pricing
economic aspects
irrigation schemes
water demand
water users associations
water allocation
food science
url https://hdl.handle.net/10568/40643
work_keys_str_mv AT mollefrancois waterscarcitypricesandquotasareviewofevidenceonirrigationvolumetricpricing