Agricultural Trade Liberalization and Poverty in Tunisia: Micro-simulation in a General Equilibrium Framework

The study tries to answer the following questions: Will exposure to world agricultural prices generate more poverty or less? To what extent will households be affected by changes in agricultural trade polices? Do multilateral agricultural liberalization matter more than bilateral changes? Results of simulations using a computable general equilibrium (CGE) model linked to household survey data suggest that trade liberalization has only modest effects on the level of GDP, but it has a substantial effect in reducing poverty. Moreover, the combined effects of global and domestic liberalization are more pro-poor than the effect of domestic liberalization alone. As a net importer of agricultural commodities, Tunisia may be expected to experience terms-oftrade losses from higher world agricultural prices. However, given Tunisia's significant agricultural import protection policies, it is expected that the agricultural sector will lose from trade liberalization that removes this protection.Tunisia, agricultural trade liberalization, poverty, International Relations/Trade,

Irrigation water pricing between governmental policies and farmers’ perception: Implications for green-houses horticultural production in Teboulba (Tunisia)

A positive mathematical programming model was constructed in this study to assess the effect of three water pricing scenarios on Teboulba’s agricultural production systems. The effects of these scenarios were estimated for three groups of farmers from three irrigated districts. Results show that water demand in group 1 remains inelastic until achieving the price of 0.20 TD. A price above this level decreases water consumption, farmer’s incomes as well as seasonal labor demand. For groups 2 and 3, the water demand curves remain highly inelastic even with a full cost recovery price. However, once reaching this last price, the model shows important income reductions reaching 20% of the current observed income. Moreover, a pricing policy aiming to recover operational and maintenance costs and which will be implemented independently from other economic, social and environmental measures can threaten the sustainability of the production systems in the region.Water pricing, positive mathematical programming, greenhouses, economic impact, Teboulba, Environmental Economics and Policy, Farm Management, Resource /Energy Economics and Policy, Q15, Q18,

Effects of Water Scarcity on the Performances of the Agricultural Sector and Adaptation Strategies in Tunisia

The chapter aims to develop a regionally disaggregated agricultural supply model for Tunisia in order to investigate the potential effects of increasing water scarcity on the performances of the agricultural sector in the country, and the structural adaptation strategies needed to face such a challenge. A set of scenarios combining future water availability, water use efficiency, and increasing producer prices were simulated using the developed model. Results show that the agricultural sector in Tunisia, particularly the agricultural employment, would be negatively affected in case of decreasing irrigation water availability, and mostly affected regions would be the north east, central west, and southern areas. However, it is always possible to mitigate such effects through a combination of structural adjustments (changing land use in different regions), enhanced water use efficiency, and support of producer prices. The model also provides recommendations regarding specific crops that should be promoted in specific regions in order to maintain an agricultural sector with high added value in Tunisia

La tarification de l’eau d’irrigation en Tunisie : une analyse en équilibre général

À l’aide d’un modèle d’équilibre général calculable centré sur le secteur agricole et agroalimentaire tunisien, nous comparons au système actuel de subvention trois méthodes de tarification de second rang de l’eau d’irrigation en termes d’efficacité et d’équité : i) une tarification au coût moyen, ii) une tarification binôme « classique », et iii) une tarification binôme « personnalisée » où l’abonnement est appliqué à l’hectare de terre irriguée. Les résultats montrent que le plus fort gain d’efficacité globale est obtenu par cette dernière. Si les pouvoirs publics ont pour objectif de faire contribuer les agriculteurs au financement de l’infrastructure hydraulique sans entraver l’irrigation, ni affecter la balance commerciale agricole et alimentaire, la tarification binôme personnalisée est l’instrument le plus adapté. Si par contre, l’objectif primordial est d’économiser l’eau, la tarification au coût moyen est la plus appropriée.A computable general equilibrium model focused on Tunisian agriculture and agri-food sector was built to compare in terms of efficiency and equity, three alternative second best pricing methods of irrigation water, namely: i) an average cost pricing method, ii) a “classical” two-tier pricing method, and iii) a “personalized” two-tier pricing method where a fixed levy is applied per hectare of irrigated land. Results show that if the policy makers’ aim is to increase farmers’ contribution to the cost of hydraulic infrastructure without hindering irrigation nor affecting agricultural and food balance of trade, the “personalized” two-tier pricing method is the best instrument. If, on the contrary, the essential objective is to save water, average cost pricing is more appropriate

Valeur economique de l’eau et flux d’eau virtuelle des principales cultures strategiques en Tunisie

L’eau virtuelle fait référence à l’eau douce utilisée durant toutes les étapes de production des biens échangés à l’échelle internationale (Allan, 1993). La teneur en eau virtuelle comprend trois composantes : l’eau virtuelle bleue qui renferme l’eau d’irrigation et l’eau utilisée durant la transformation d’un produit, l’eau verte incluant l’eau de pluie et l’eau emmagasinée dans le sol et finalement l’eau grise qui représente le volume d’eau nécessaire pour diluer tous les polluants introduits durant le processus de production. Plusieurs recherches considèrent que les échanges d’eau virtuelle présentent une solution potentielle à la mauvaise allocation des ressources en eau qui représente un problème commun dans plusieurs pays confrontés à des risques de pénurie d’eau, tel est le cas de la Tunisie. En effet, plusieurs recherches ont souligné le fait que l’optimisation des systèmes de culture et de la répartition géographique de la production en s’appuyant sur le concept d’eau virtuelle peut diminuer considérablement la pression sur l’eau d’irrigation et entraîne, par conséquent, un meilleur niveau de sécurité hydrique et alimentaire. L’objectif de ce travail, est de voir dans quelles mesures les instruments de protection peuvent-ils prendre en compte la composante gestion de la ressource eau et contribuer à travers les politiques commerciales et les flux d’eau virtuelle à une meilleure conservation, usage et allocation des ressources en eau ? Pour cela, on procède d’une part, à l’évaluation de la valeur économique de l’eau à travers des indicateurs tels que la productivité économique apparente de l’eau totale utilisée (définie comme étant le rapport entre le prix local du produit (TND/kg) et l’évapotranspiration réelle en (m3/kg)) et la valeur de l’eau d’irrigation (IWV) pour chacune des cultures sélectionnées. La IWV est estimée comme la valeur nette de la production par hectare de culture en système irrigué moins la valeur nette de la production en système pluvial divisée par le volume d'eau appliqué (m3). La valeur nette de la production est la valeur de la production moins les coûts de tous les intrants sauf l'eau. D’autre part, on se propose d’estimer les teneurs et les flux d’eau virtuelle des principaux produits agricoles et agroalimentaires produits, exportés et importés par la Tunisie

An agriculture- and trade-focused social accounting matrix for Tunisia, 2012

The purpose of this paper is to document the different steps followed to construct the Tunisian Social Accounting Matrix (SAM) for the year 2012. More precisely, it describes the estimation methods and the nature of data used in the development of the SAM, which has a specific focus on the agriculture and food sectors. The SAM also features a regional disaggregation by three agro-ecological zones. The data used in the construction process are based on two main publications of the “Institut National de la Statistique” (INS): the input-output table (I/O) (2012) and the supply-use table (2012). The I/O (2012) disaggregates the Tunisian economy into 24 sectors, including two agri-food sectors: (1) Agriculture and Fishery, and (2) Food Industries. The supply-use table accounts for about 400 commodities, of which 59 are agriculture, forestry, and fishery products and 64 are processed-food products. Other major information sources used include the household survey publication (2010), the annual report of the Central Bank (2013), the “Annuaire des Statistiques Agricoles” (Ministry of Agriculture 2013c), and the “Budget Economique” (2013).Non-PRIFPRI1; PIM 1.2 Macroeconomic, Trade, and Investment PoliciesDSGD; PIMCGIAR Research Program on Policies, Institutions, and Markets (PIM

Irrigation Water Pricing in Tunisia: Issues for Management Transparency

Tunisia is facing increasing competition for water among users due to population and economic growth. Projections show that the water resources will be fully used by 2010. As a result, the opportunity cost of water has risen significantly. In order to cope with potential water shortages, the Tunisian government has undertaken a set of policies and technical measures, such as institutional reforms, improving the efficiency of water delivery network and water pricing policies reforms. It has been observed that cost estimation of water produced and delivered is not transparent. Thus any increase in water price is opposed by farmers. Data is not consistent, making the establishment of a water pricing scheme difficult. Besides, the water authority lacks accurate information on water productivity at farm level leading to asymmetric information on the side of the authorities as well as on the side of the farmers. For a successful reform of the irrigation water pricing policy two conditions have to prevail: i) integration of the accounting system of capital costs with an analytical approach and ii) assessing farmers’ willingness to pay for irrigation water. Finally, the implementation of a water rights system could be an alternative to solve the asymmetric information problem and improve the economic efficiency