The MODERE Model and The Economic Analysis of Farmers’ Decisions

Carlos Gomez and Carlos Gutierrez

No 6492, 107th Seminar, January 30-February 1, 2008, Sevilla, Spain from European Association of Agricultural Economists

Abstract: The MODERE, the Ministry of the Environment Irrigation Decision Model, is a simulation tool which uses mathematical programming methods to reveal the implicit multiattribute objective function lying behind the observed cropping decision. The model takes different criteria such as profit maximization, risk aversion, avoidance of management complexities and so forth into account. In order to determine the feasible combination of attributes of this objective function the model considers the production possibility frontier explicitly as depending on market prices, policy incentives, availability of production factors, water irrigation facilities agronomic vocation and other constraints. Once calibrated the model becomes a powerful tool to assess the impact of different policy scenarios such as subsidies decoupling, water prices modifications, irrigation technique substitution and so on. The MODERE is a preference revelation model purposedly designed to be integrated in the Decision Support Platform which is used by the Spanish Ministry of the Environment to compare the policy scenarios which are relevant to assess the effectiveness and economic impact of the measures designed to reach the environmental objectives of the Water Framework Directive. The model is supported by a comprehensive data base built on purpose for its implementation covering almost all the Spanish Irrigation Districts with high spatial detail. This model is currently one of the important modules of the information and decision support systems developed by the Economic Analysis Unit of the Water Directorate at the Ministry of the Environment in Spain.

Keywords: Land Economics/Use; Political Economy; Research Methods/ Statistical Methods; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 17
Date: 2008
New Economics Papers: this item is included in nep-cmp
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaa107:6492

DOI: 10.22004/ag.econ.6492

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