Microeconomic analysis of irrigation efficiency improvement in water use and water consumption

Julio Berbel, Carlos Gutierrez-Marín and Alfonso Expósito

Agricultural Water Management, 2018, vol. 203, issue C, 423-429

Abstract: Increasing irrigation efficiency has been suggested as a solution in water scarce areas but its potential rebound effect (increased ex-post water consumption) is receiving growing attention; paradoxically, although improved irrigation efficiency may reduce water use, it may also increase water consumption. This paper undertakes an analytical review of the microeconomic foundations of the effects of water-saving investments and the resulting irrigation efficiency on water use and consumption. Moreover, it analyses the relationship between irrigation efficiency, water demand and water pricing. Findings show that improving efficiency would significantly reduce water use, though the impact on water consumption would be negligible even if there is a radical increase in water cost. Thus, the potential rebound effect would not be related to irrigation efficiency, but rather to other factors such as irrigated area expansion, crop-mix changes, and market forces.

Keywords: Irrigation efficiency; Water demand; Irrigated agriculture; Jevons paradox; Water conservation and saving technologies; Water pricing (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:agiwat:v:203:y:2018:i:c:p:423-429

DOI: 10.1016/j.agwat.2018.02.026

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