Retaining population with water? Irrigation policies and depopulation in Spain over the long term

Ignacio Cazcarro, Miguel Martín-Retortillo, Guillermo Rodríguez-López, Ana Serrano and Javier Silvestre
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Ignacio Cazcarro: Universidad de Zaragoza, ARAID
Guillermo Rodríguez-López: Universidad de Zaragoza
Ana Serrano: Universidad de Zaragoza, IA2
Javier Silvestre: Universidad de Zaragoza, IEDIS

No 256, Working Papers from European Historical Economics Society (EHES)

Abstract: Depopulation, especially, but not only, rural, has become a major concern across many countries. As one type of place-based policy, irrigation has been claimed to contribute to resettling populations and reducing outward migration, by increasing agricultural output, productivity, and competitiveness and, consequently, employment and living standards. This paper aims to elucidate on the relationship between irrigation and population for Spain, historically and currently the most irrigated country and one of the most depopulated countries in Europe. We use municipal-level data over the period 1910-2011 and exploit a staggered difference-in-differences design. Overall, we find an effect on population only for irrigation developments that started in the relatively distant past. In any case, effects are temporary or tend to level off. We also consider trade-offs. We discuss the policy implications of the findings in light of current policies, and in terms of environmental and economic costs of increasing the intensity of irrigation.

Keywords: Depopulation; place-based policies; irrigation programs; long-term view; staggered DiD; Spain (search for similar items in EconPapers)
JEL-codes: J11 N54 N94 Q15 Q25 R11 (search for similar items in EconPapers)
Pages: 64 pages
Date: 2024-04
New Economics Papers: this item is included in nep-agr, nep-env, nep-eur, nep-geo, nep-mig and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:hes:wpaper:0256

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