A Market-Based Economic Instrument to Better Use Water in Agriculture

Oana Brînzan, Marian Drăgoi, Dalia Bociort, Eugenia Țigan, Nicoleta Mateoc-Sîrb and Monica Lungu
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Oana Brînzan: Faculty of Food Engineering, Tourism and Environmental Protection, Aurel Vlaicu University of Arad, Str. Elena Drăgoi, no 2, 310330 Arad, Romania
Marian Drăgoi: Faculty of Forestry, Stefan cel Mare University of Suceava, Str. Universitatii, 13, 720225 Suceava, Romania
Dalia Bociort: S.C. Water Company Arad S.A., Str. Sabin Drăgoi, Nr. 2-4, 312330 Arad, Romania
Eugenia Țigan: Faculty of Food Engineering, Tourism and Environmental Protection, Aurel Vlaicu University of Arad, Str. Elena Drăgoi, no 2, 310330 Arad, Romania
Nicoleta Mateoc-Sîrb: Department of Management and Rural Development, Banat’s University of Agricultural Sciences and Veterinary Medicine, Calea Aradului 119, Timis, 300645 Timisoara, Romania
Monica Lungu: Faculty of Food Engineering, Tourism and Environmental Protection, Aurel Vlaicu University of Arad, Str. Elena Drăgoi, no 2, 310330 Arad, Romania

Sustainability, 2020, vol. 12, issue 4, 1-12

Abstract: The paper presents a market-oriented system of returnable guarantees that can be combined with tradable permits to encourage farmers to use alternative sources of water instead of the regular watering network, or to steer the farming system toward environmentally-friendly systems like low tillage and/or organic farming. Factual data from real farming were bootstrapped to test whether or not a set of farms could save water and reduce chemical input due to the higher cost of maintaining the status quo. Based on interactions between water, pesticides, fertilizers, and crops, the system of returnable guarantee determines the farmers to reduce the amount of water harvested from aquifers, generates benefits for the most environmentally-friendly farmers, and stimulate conversion to organic farming.

Keywords: agriculture; wastewater; permits; circular economy (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:4:p:1473-:d:321376

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