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Willingness to pay for improved irrigation water supply reliability: An approach based on probability density functions

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  • Guerrero-Baena, M. Dolores
  • Villanueva, Anastasio J.
  • Gómez-Limón, José A.
  • Glenk, Klaus
Abstract
In irrigated agricultural systems, a major source of uncertainty relates to water supply, as it significantly affects farm income. This paper investigates farmers’ utility changes associated with shifts in the probability density function of water supply leading to a higher water supply reliability (higher mean and lower variance in annual water allotments). A choice experiment relying on a mean-variance approach is applied to the case study of an irrigation district of the Guadalquivir River Basin (southern Spain). To our knowledge, this is the first study using parameters of these probability density functions of water supply as choice experiment attributes to value water supply reliability. Results show that there are different types of farmers according to their willingness to pay (WTP) for improvements in water supply reliability, with some willing to pay nothing (47.8%) while others have a relatively low (28.0%) or high (24.2%) WTP. A range of factors influencing farmers’ preferences toward water supply reliability are revealed, with those related to risk exposure to water availability being of special importance. The results can be used to assist the design of more efficient policy instruments to improve water supply reliability in Mediterranean and semi-arid climate regions.

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  • Guerrero-Baena, M. Dolores & Villanueva, Anastasio J. & Gómez-Limón, José A. & Glenk, Klaus, 2019. "Willingness to pay for improved irrigation water supply reliability: An approach based on probability density functions," Agricultural Water Management, Elsevier, vol. 217(C), pages 11-22.
    • Handle: RePEc:eee:agiwat:v:217:y:2019:i:c:p:11-22
    DOI: 10.1016/j.agwat.2019.02.027
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    Cited by:

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    2. Markose Chekol Zewdie & Michele Moretti & Daregot Berihun Tenessa & Steven Passel, 2024. "Farmers’ preferences and willingness to pay for improved irrigation water supply program: a discrete choice experiment," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(11), pages 27277-27300, November.
    3. Giannoccaro, Giacomo & Roselli, Luigi & Sardaro, Ruggiero & de Gennaro, Bernardo C., 2022. "Design of an incentive-based tool for effective water saving policy in agriculture," Agricultural Water Management, Elsevier, vol. 272(C).
    4. Gómez-Limón, José A. & Gutiérrez-Martín, Carlos & Montilla-López, Nazaret M., 2021. "Priority water rights. Are they useful for improving water-use efficiency at the irrigation district level?," Agricultural Water Management, Elsevier, vol. 257(C).
    5. Gómez-Limón, José A. & Granado-Díaz, Rubén, 2023. "Assessing the demand for hydrological drought insurance in irrigated agriculture," Agricultural Water Management, Elsevier, vol. 276(C).
    6. Gómez-Limón, José A., 2020. "Hydrological drought insurance for irrigated agriculture in southern Spain," Agricultural Water Management, Elsevier, vol. 240(C).
    7. Mamine, Fateh & Fares, M'hand & Minviel, Jean Joseph, 2020. "Contract Design for Adoption of Agrienvironmental Practices: A Meta-analysis of Discrete Choice Experiments," Ecological Economics, Elsevier, vol. 176(C).
    8. Mostafa Mardani Najafabadi & Abbas Mirzaei & Hassan Azarm & Siamak Nikmehr, 2022. "Managing Water Supply and Demand to Achieve Economic and Environmental Objectives: Application of Mathematical Programming and ANFIS Models," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 36(9), pages 3007-3027, July.
    9. Alcon, Francisco & de-Miguel, María Dolores & Martínez-Paz, José Miguel, 2021. "Assessment of real and perceived cost-effectiveness to inform agricultural diffuse pollution mitigation policies," Land Use Policy, Elsevier, vol. 107(C).

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