Economics of irrigation water management : a literature survey with focus on partial and general equilibrium models

Water policy is an important topic on the agenda of the international community, and efficiency and equity in the allocation of water have emerged as important factors to be considered. Water pricing can be used to mitigate both the quantity and quality dimensions of water scarcity. This paper reviews partial equilibrium models and general equilibrium models that are relevant to irrigation water management issues. The most widely discussed issues in these models are water markets and water pricing. The interrelationships between economic, cultural, social, and political aspects that are related to water policy make it difficult to provide a comprehensive policy analysis. General equilibrium models of irrigation water management allow incorporation of both the irrigation sector and the other sectors in the economy and analysis of policies affecting each of them and the interaction between them. In addition to being able to address sector and household specifications, production factors, time horizon, pricing policies, and institutions such as water markets, general equilibrium models allow the analysis of the impact of water policies on equity and poverty alleviation. The authors conclude that, although there has been a significant increase in efforts to analyzewater related problems, analytical and empirical research in the field is still deficient and more effort is needed to address them.Environmental Economics&Policies,Water Supply and Sanitation Governance and Institutions,Town Water Supply and Sanitation,Water Supply and Systems,Water Conservation

Estimation and modelling impacts of Pillar 2 measures on the agricultural sector: Workshop proceedings

This report presents a synthesis of the workshop, summarising the presentations and discussions in the different sessions. The report is organized following the structure of the workshop. The first session of the workshop sets the scene and introduces the main topic at stake. The second session aims at providing current studies estimating the impacts of Pillar 2 measures on agricultural productivity and other main factors (e.g., growth, employment). The third session provides an overview of existing modelling approaches, general and partial equilibrium, to simulate effects of shocks in Pillar 2 payments on the EU agricultural sector. Finally, the fourth session concludes and draws some key messages on how the JRC shall proceed in future efforts on the topic.JRC.D.4-Economics of Agricultur

Economy-wide Impacts of Food Waste Reduction: A General Equilibrium Approach

Food waste is increasingly recognized as an important factor threatening not only food security, but as well several dimensions of sustainability of the food system. However most of the studies in the literature focus on technological aspects and ignore the costs of options to reduce food waste. In this study we develop a framework to analyse the effects of food waste reduction in a CGE model to reflect associated costs across sectors and agents. Our results suggest that enforced food waste reduction, e.g. by regularity measures such as standards, may cause severe loss of competitiveness for agriculture and food production.JRC.J.4-Agriculture and Life Sciences in the Econom

The cost of import prohibition for political reason: CGE analysis of the Russian ban on agri-food products

In August 2014, Russia imposed a one year import ban on most agri-food products from countries enforcing Ukraine-related sanctions against Russia. A computable general equilibrium (CGE) model is used to simulate effects of this retaliatory policy shift across the European Union (EU), Russia and a selection of key trade partners. Sensitivity analysis of factor mobility is performed to better capture short term and long term implications of this import prohibition, while latest trade data are carefully prepared and exploited. In the short term, due to high factor immobility, production has very little leeway to adjust, provoking notable variations in prices which absorb most of the import ban shock. At EU level, price and production decrease by about 1.9% and 0.3% respectively, while in the longer term (if the ban is maintained beyond one year) these figures amount 1.4% and 1.2% respectively. Interestingly, results indicate that Russia is the region with the highest welfare loss (about 3.4 billion euros) while the EU can recover around 25% of the lost trade volume with Russia through expansion of exports to other markets

Matrice de comptabilité sociale désagrégée de l'économie sénégalaise en 2014

Ce rapport documente une Matrice de comptabilité sociale (MCS) désagrégée de l'économie sénégalaise en 2014. Elle comprend 218 comptes répartis en 55 activités économiques (dont 14 comptes de ménages en tant que producteurs), 57 comptes de produits commercialisés et 9 comptes de produits autoconsommés, 3 catégories de travail distingué selon la qualification (qualifié, semi-qualifié et non-qualifié) dans 14 régions sénégalaises et 1 région représentant le reste du monde; 5 comptes de capital (agricoles, non agricoles, terre non irriguée, terre irriguée et élevage), 5 comptes d'impôts et taxes (directs, indirects, ventes, facteur travail et importations), 33 catégories de ménages représentatifs (régionalisés) et un compte de marges, un compte d'épargne-investissement, 4 comptes allouant les investissements (routes, irrigation, autres infrastructures, reste des investissements), un compte d'entreprises, du gouvernement et du reste du monde.JRC.D.4-Economics of Agricultur

MACRO-MICRO FEEDBACK LINKS OF IRRIGATION WATER MANAGEMENT IN TURKEY

Agricultural production is heavily dependent on water availability in Turkey, where half the crop production relies on irrigation. Irrigated agriculture consumes about 75 percent of total water used, which is about 30 percent of renewable water availability. This study analyzes the likely effects of increased competition for water resources and changes in the Turkish economy. The analysis uses an economy-wide Walrasian Computable General Equilibrium model with a detailed account of the agricultural sector. The study investigated the economy-wide effects of two external shocks, namely a permanent increase in the world prices of agricultural commodities and climate change, along with the impact of the domestic reallocation of water between agricultural and non-agricultural uses. It was also recognized that because of spatial heterogeneity of the climate, the simulated scenarios have differential impact on the agricultural production and hence on the allocation of factors of production including water. The greatest effects on major macroeconomic indicators occur in the climate change simulations. As a result of the transfer of water from rural to urban areas, overall production of all crops declines. Although production on rainfed land increases, production on irrigated land declines, most notably the production of maize and fruits. The decrease in agricultural production, coupled with the domestic price increase, is further reflected in net trade. Agricultural imports increase with a greater decline in agricultural exports.Computable General Equilibrium; Feedback links; Irrigation Water; Turkey

Estimation of food demand parameters in Kenya

A Quadratic Almost Ideal Demand System (QUAIDS) approachJRC.D.4-Economics of Agricultur

Policy impact assessment in developing countries using Social Accounting Matrices: the Kenya SAM 2014

This paper describes the structure and estimation of a Social Accounting Matrix (SAM) of Kenya for the year 2014. Among its specificities, this SAM includes a very high disaggregation of the agri-food sector and accounts for the double role of households as producers and consumers. Accounting for these characteristics is crucial to provide robust socioeconomic analysis in the context of developing countries. Indeed, this type of database is valuable to perform ex-ante evaluations of economic policies with various economic models and techniques. In this paper, we present an application with a linear multiplier analysis (backward linkages and value chain decomposition). The results show the capacity of the primary sector in Kenya to generate value added and employment, with this growth distributed more intensely in rural households whose main livelihood is semi-subsistence agriculture

Boosting the Fertilizer Production in Kenya: a CGE analysis

Food security remains a key challenge in many Sub-Saharan African countries and in Kenya in particular. Kenya addresses this concern with a noteworthy policy mix, aiming at giving to the agricultural sector a leading task in improving food security. In this paper, through a Computable General Equilibrium (CGE) model specifically modified for the context of developing country analyses, we address the impacts of the construction of a new fertilizer plant on the agricultural sector and the rest of the economy. For the purpose of the study, a desegregated version of a 2014 Social Accounting Matrix (SAM) has been developed. Results suggests that increasing domestic production of fertilizers do not fully achieve the objectives of reducing rural poverty and increasing agricultural production without complementary policies that help small-holder farmers to overcome the backward technology trap and give them better access to input and output markets.JRC.D.4-Economics of Agricultur

Policy options to support the Agriculture Sector Growth and Transformation Strategy in Kenya: A CGE analysis

This report provides scientific evidences supporting the new Agriculture Sector Growth and Transformation Strategy in Kenya. A Computable General Equilibrium (CGE) model specifically modified for the context of Kenya is used to address the impacts of six policy changes. For the purpose of the study, a desegregated version of a 2014 Social Accounting Matrix (SAM) has been developed for Kenya. Multi-sectoral analytical tools are used to describe the Kenyan economy and inform about which agri-food value chains have the greatest impact in terms of output, employment and value added. Then, results of simulated policy changes are presented in this report, considering that a more careful analysis at regional and household type levels is required in order to draw robust policy recommendations.JRC.D.4-Economics of Agricultur