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Marielle Montginoul - One of the best experts on this subject based on the ideXlab platform.
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Water Pricing in France: Toward More Incentives to Conserve Water
Water Pricing Experiences and Innovations, 2015Co-Authors: Marielle Montginoul, Sébastien Loubier, Bernard Barraqué, Anne-laurence AgenaisAbstract:With an historical overview of the legislative and regulatory framework of Water Pricing in France, this chapter first describes how the focus of Pricing policy progressively shifted from budget balancing to Water conservation then to social protection. The next part focuses on Pricing practices in the urban sector. Price levels and the evolution of tariff structures are analyzed using surveys and case studies results. The fourth section focuses on Water Pricing in the agricultural sector at different scales: large public irrigation schemes, smaller Water user associations, and individual irrigation systems. The evolution of Water abstraction fees collected by river-basin authorities is also analyzed, and we present how these fees can be modulated depending on the degree of collective management of agricultural Water resources. To conclude, we discuss the efficiency of Water Pricing in urban and irrigation sectors and highlight some limits to take into account several uses.
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simulating the impact of Pricing policies on residential Water demand a southern france case study
Water Resources Management, 2012Co-Authors: Jeandaniel Rinaudo, Noemie Neverre, Marielle MontginoulAbstract:The case study conducted in this paper looks at residential Water Pricing from three different points of view. It first describes existing urban Water-Pricing practices in Southern France, emphasizing that Pricing is not yet being used as a tool for providing economic incentives to save Water. It then looks at the observed impact of Pricing on Water consumption, through an econometric analysis of a cross-sectional data set. The analysis suggests that demand, with an estimated price elasticity of −0.2, is not yet very responsive to price variation. A regional Water model (300 municipalities) is then developed and used to simulate the potential impact of various Water-Pricing scenarios on aggregate Water demand, aggregate Water sales revenue, and consumer surpluses. The results illustrate the trade-offs that have to be made between the search for environmental effectiveness, cost recovery, and equity when implementing complex Water-Pricing structures such as block rates or seasonal Water Pricing.
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Assessment of the effectiveness of optional Water Pricing for irrigation in Charente river basin (France)
2008Co-Authors: Sébastien Loubier, Marielle Montginoul, G. Gleyses, P. Garin, F. ChristinAbstract:In period of low Water level, some river basins face an imbalance between the available Water resource and the uses. Favored by the 1992 French Water act, rending the metering progressively obligatory and that recommend dialogue among Water actors, a volumetric management (VM) mechanism has progressively been implemented. This is the case since 2000 in the Upstream Charente river basin that face an important imbalance added to high sensitivity of the resource to the climatic conditions. This article presents the VM instruments implemented in this basin, discusses their effectiveness and propose an alternative management system based on an optional Water Pricing and on a new Water consumption declaration system improving control and allowing potential sanctions. It is then shown that this demand management system allow a 10% resource saving, reduce inequities among farmers and is most cost effective than supply creation options or regulatory ones.
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Analysing the Diversity of Water Pricing Structures: The Case of France
Water Resources Management, 2006Co-Authors: Marielle MontginoulAbstract:This paper presents the results of a 2003 national survey of urban Water Pricing structure implemented by 429 district level Water utilities. After providing some background elements on the diversity of existing Water Pricing structures, the paper shows how each structure can be used to achieve different management objectives (Water allocation efficiency, costs recovery, and equity). It then describes the structures adopted by French Water utilities, showing that flat rate are rarely adopted; declining blocks frequently used; and increasing blocks Pricing which should be used to promote Water use efficiency remain extremely rare. A statistical clustering is then conducted and a typology of situations elaborated. The paper concludes with highlighting that current Pricing structures are influenced by past practices and that the dominant objective of Water utilities is to cover costs.
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Economic instruments for Water management in the presence of positive externalities: the case of rice-based irrigation in Sri Lanka
2003Co-Authors: Marielle MontginoulAbstract:In a number of countries, the Water sector is currently facing with two main problems: Water conflicts and Water managers` budget deficits. The implementation of economic instruments, like Water Pricing or Water reallocation through market, is frequently advocated as an appropriate solution to solve these two problems. However, a number of scholars and practitioners have highlighted that the use of such instruments may have significant third part effects and they have proposed to 'internalise` these negative externalities. After reviewing literature on externalities (section 1), we argue that such negative externalities reveal the existence of significant positive externalities in the pre-reform situation. This argument is supported by a detailed case study conducted in a Sri Lankan irrigation system, where positive externalities induced by irrigation in the current situation are identified and quantified (section 2). The case study helps to understand why the implementation of a new Pricing system for irrigation Water, which would significantly modify the allocation of Water within the hydrosystem, is not acceptable by the beneficiaries of the positive externalities. Then, we propose a Water Pricing system which takes into account the positive externalities of irrigation and which is therefore more likely to be accepted by all the parties involved Water management (section 3).
Luc Dhaese - One of the best experts on this subject based on the ideXlab platform.
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estimating the impacts of Water Pricing on smallholder irrigators in north west province south africa
Agricultural Water Management, 2009Co-Authors: Stijn Speelman, Jeroen Buysse, Stefano Farolfi, Aymen Frija, Marijke Dhaese, Luc DhaeseAbstract:Worldwide growing Water scarcity has increased the call for economic instruments to stimulate rational Water use in agriculture. Furthermore, cost-recovery is now widely accepted as a cornerstone of sustainable Water management. In many developing countries, where agricultural Water use is often still subsidised, Water Pricing policies are developed for allocating Water efficiently and achieving sustainability of Water systems. However, the impacts of Water Pricing policies on irrigation Water use and on farm production systems is mostly unknown. We introduce an innovative two-stage methodology that allows estimating these effects at farm level. Applying the method to small-scale irrigators in South Africa, we show that Water demand is quite responsive even to small changes in Water price. In addition, the introduction of a Water price significantly decreases farm profit. This appears to be a problem primarily for the poorer farmers.
Manuel Pulidovelazquez - One of the best experts on this subject based on the ideXlab platform.
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systems analysis approach to the design of efficient Water Pricing policies under the eu Water framework directive
Journal of Water Resources Planning and Management, 2013Co-Authors: Niels Riegels, Manuel Pulidovelazquez, Charalampos Doulgeris, Valerie Sturm, Roar Jensen, Flemming Moller, Peter BauergottweinAbstract:AbstractEconomic theory suggests that Water Pricing can contribute to efficient management of Water scarcity. The European Union (EU) Water Framework Directive (WFD) is a major legislative effort to introduce the use of economic instruments to encourage efficient Water use and achieve environmental management objectives. However, the design and implementation of economic instruments for Water management, including Water Pricing, has emerged as a challenging aspect of WFD implementation. This study demonstrates the use of a systems analysis approach to designing and comparing two economic approaches to efficient management of groundWater and surface Water given EU WFD ecological flow requirements. Under the first approach, all wholesale Water users in a river basin face the same volumetric price for Water. This Water price does not vary in space or in time, and surface Water and groundWater are priced at the same rate. Under the second approach, surface Water is priced using a volumetric price, while groun...
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design of efficient Water Pricing policies integrating basinwide resource opportunity costs
Journal of Water Resources Planning and Management, 2013Co-Authors: Manuel Pulidovelazquez, E Alvarezmendiola, Joaquin AndreuAbstract:AbstractBy ignoring the opportunity cost of Water use, Water is undervalued, which can lead to significant errors in investments and Water allocation decisions. The marginal resource opportunity cost (MROC) varies in time and space, as resource availability, demands, and users’ WTP vary. This spatial and temporal variability can only be captured by basinwide hydro-economic models integrating Water demands and environmental requirements, resources, infrastructure, and operational and institutional restrictions. This paper presents a method for the simulation of Water Pricing policies linked to Water availability, and the design of efficient Pricing policies that incorporate the basinwide marginal value of Water. Two approaches were applied: priority-based simulation and economic optimization. The improvement in economic efficiency was assessed by comparing the results from simulation of the current system operation and the Pricing schedule. The difference between the benefits for the simulated current mana...
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efficiency equity and sustainability in a Water quantity quality optimization model in the rio grande basin
Ecological Economics, 2008Co-Authors: Frank A Ward, Manuel PulidovelazquezAbstract:Integrated hydrologic and economic optimization models at the basin scale provide a framework for policy design, implementation, and evaluation in Water-stressed basins. Despite the considerable potential that basin scale analysis offers, few basin-wide studies have examined tradeoffs among efficiency, equity, and sustainability when analyzing the design of Water resource programs. This paper develops a basin scale framework to identify hydrologic and economic impacts of alternative Water Pricing programs that comply with environmental regulations for protecting Water quality. Key issues are examined that confront integrated hydroeconomic basin models: linking Water and economics, spatial and temporal scale integration, and quantity-quality relationships. Economic efficiency is defined and measured for each of two urban Water Pricing arrangements that comply with urban Water quality protection regulations. Alternative measures of equity are analyzed in both spatial and temporal dimensions. Sustainability is evaluated physically for protecting the Water supply and financially for long-term revenue viability. The approach is illustrated from results of a dynamic nonlinear programming optimization model of Water use in North America's Rio Grande basin. The model optimizes the net present value of the basin's total economic benefits subject to constraints on equity, sustainability, hydrology, and institutions. It is applied to assess impacts of a two-tiered Pricing program that complies with recently implemented drinking Water quality standards for the basin's two largest U.S. cities: Albuquerque, New Mexico, and El Paso, Texas. Results suggest that two-tiered Pricing of urban Water supply has considerable potential to perform well in meeting the aims of efficiency, equity, and sustainability. Findings provide a general framework for designing Water Pricing programs that comply with environmental regulations.
Stijn Speelman - One of the best experts on this subject based on the ideXlab platform.
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estimating the impact of Water Pricing on Water use efficiency in semi arid cropping system an application of probabilistically constrained nonparametric efficiency analysis
Water Resources Management, 2013Co-Authors: Prakashan Chellattan Veettil, Stijn Speelman, Guido Van HuylenbroeckAbstract:By introducing proper Pricing instruments, farm level Water can be used more efficient. But it demands a proper estimation strategy to analyse the efficiency and the input use behavior of farms under the new Pricing system. As most production relationships are stochastic in nature, excluding random errors and noise from model specifications often leads to criticism. By using a probabilistically constrained programming formulation, an empirical estimation of stochastic data envelopment analysis (DEA) is done to analyze the efficiency of irrigation Water use in the agricultural production system in the Krishna river basin, India. The results illustrate that Water demand is higher for farms at, or close to the frontier and lower for those with low efficiency levels. In a second step, a simulation model is developed by using the frontier and economic efficiency derived from stochastic DEA to analyse the impact of Water Pricing on Water use efficiency and Water use behaviour. It is shown that an increase in the Water price would not cause sizeable profit loss, if the Pricing system is administered on a volumetric basis, but Water demand would decrease substantially.
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complementarity between Water Pricing Water rights and local Water governance a bayesian analysis of choice behaviour of farmers in the krishna river basin india
Ecological Economics, 2011Co-Authors: Prakashan Chellattan Veettil, Stijn Speelman, Jeroen Buysse, Aymen Frija, Guido Van HuylenbroeckAbstract:To ensure efficient Water allocation and use, policy designers have adopted various strategies, including price setting, decentralising irrigation Water management or improving Water rights. Most of these strategies have been applied individually, without considering the complementary relationships between them. This paper uses a discrete choice model to analyse the scope for combinations of tools for irrigation Water demand management and farmers' acceptance of these. In terms of local irrigation Water governance, the presence or absence of collective irrigation Water management, in the form of a Water Users Association, is considered. Water rights are specified in terms of the duration and quality of the entitlement and its transferability. Finally, four types of Water Pricing methods (area, crop, block and volumetric Pricing) are considered. Using a choice experiment, we elicit the most preferred Water Pricing method, under different Water rights situations, at different price levels and under various contexts for local irrigation Water governance. Our results indicated that under conditions of improved Water rights, preference for volumetric Pricing increases, whilst the presence of a Water Users Association reduces this preference. Furthermore, it was found that using an appropriate combination of Water demand management tools considerably increases the willingness to pay for a change in scenario.
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estimating the impacts of Water Pricing on smallholder irrigators in north west province south africa
Agricultural Water Management, 2009Co-Authors: Stijn Speelman, Jeroen Buysse, Stefano Farolfi, Aymen Frija, Marijke Dhaese, Luc DhaeseAbstract:Worldwide growing Water scarcity has increased the call for economic instruments to stimulate rational Water use in agriculture. Furthermore, cost-recovery is now widely accepted as a cornerstone of sustainable Water management. In many developing countries, where agricultural Water use is often still subsidised, Water Pricing policies are developed for allocating Water efficiently and achieving sustainability of Water systems. However, the impacts of Water Pricing policies on irrigation Water use and on farm production systems is mostly unknown. We introduce an innovative two-stage methodology that allows estimating these effects at farm level. Applying the method to small-scale irrigators in South Africa, we show that Water demand is quite responsive even to small changes in Water price. In addition, the introduction of a Water price significantly decreases farm profit. This appears to be a problem primarily for the poorer farmers.
Julio Berbel - One of the best experts on this subject based on the ideXlab platform.
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why is Water Pricing ineffective for deficit irrigation schemes a case study in southern spain
Water Resources Management, 2017Co-Authors: Alfonso Exposito, Julio BerbelAbstract:This paper explores the impact on Water demand of the adoption of deficit and precision irrigation as a farmer’s attempt to respond to Water scarcity by maximising Water productivity. The case study is characterised by the intensive use of deficit irrigation techniques in olive groves, which account for 50% of all irrigated land in southern Spain. These technologies have an important influence on the structure of the Water demand. This study reveals that following the adoption of such technologies, Water demand does not respond to moderate changes in Water price, unless price increases become so great that they reach a threshold price representing a disproportionate and unaffordable social impact. This fact has significant consequences for Water policy as Water Pricing becomes an ineffective instrument for managing Water demand in a context characterised by resource scarcity and farmers’ adoption of deficit irrigation techniques.
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the impact of Water Pricing policy in spain an analysis of three irrigated areas
Agricultural Water Management, 2000Co-Authors: Julio Berbel, Jose A GomezlimonAbstract:Linear programming (LP) has been widely used to solve company resource allocation problems. The technique’s ability to predict how companies will adjust to changes in a variety of exogenous factors is well known, and when used at company level, it enables us to avoid aggregation problems. The decision-maker’s objective in this type of research is to maximize profit estimated as gross margin. We apply the LP model to three farms in three different irrigation units that, we believe, provide a representative sample of Spanish irrigated agriculture. In focusing on the goals of this research we stress that Water Pricing as a single instrument for control of Water use is not a valid means of significantly reducing agricultural Water consumption. This is because consumption does not fall until prices reach such a level that farm income and agricultural employment are negatively affected. If Water Pricing is selected as a policy tool, among the consequences for agricultural sector will be that: farm income will decrease by around 40% before Water demand decreases significantly. The impact of this reduction on rural areas that are dependent on irrigated agriculture will be catastrophic. Secondly there will be a reduction in the number of crops available for farming, with the consequence of a smaller number of alternatives and greater technical and economic vulnerability of the agricultural sector. Finally when Water consumption decreases as a consequence of substitution of crops with higher demands for Water (cotton, sugar beet, onions, corn) there will be a significant loss of employment both directly on farms and indirectly on processing facilities. These conclusions are drawn from our analysis of three irrigation units in Spain, but we believe that they offer a realistic estimate of policy impacts on the irrigated sector of Spanish agriculture. Even if price increases are not a suitable policy because of the high negative impact, we suggest that a price (around 2 PTAs/m 3 ) might be of interest in order to make farmers aware of the scarcity of
