New directions in water resources management: The role of water pricing policies

Water resources will face increasing competition and higher environmental concerns during this century. To meet these challenges, the new Water Framework Directive has drawn up an integrated framework and established the basic principles for a sustainable water policy in the European Union. The introduction of water prices reflecting the true cost of irrigation is one of its most innovative components. In this paper, a positive mathematical programming model is developed to assess the environmental and socio-economic impacts of water pricing policies in Spanish irrigated lands. The model interface allows friendly use and easy replication in a large number of irrigation districts, selected throughout the Spanish territory. The model results show the impact on environmental indicators, water consumption, cropping patterns, technology adoption, labor, farmers' income, and the water agency revenues when different scenarios of cost recovery are considered. It is argued that this modeling approach may be used as a management tool to assist in the implementation of the cost recovery approach of the new Water Framework Directive

A generic template for FSSIM

Agricultural and Food Policy, Environmental Economics and Policy, Land Economics/Use,

IMPACTS OF EUROPEAN BIOFUEL POLICIES ON AGRICULTURAL MARKETS AND ENVIRONMENT UNDER CONSIDERATION OF 2ND GENERATION TECHNOLOGIES AND INTERNATIONAL TRADE

Even though recent discussions on food prices and indirect land use change point at potential conflicts associated with the production of biofuels the appraisal of biofuels as an effective instrument to slow down climate change and reduce energy dependency still prevails. The EU Renewable Energy Directive (EUROPEAN COMMISSION, 2009) underlines this trend by setting a target of 10% share of energy from renewable sources in the transport sector by 2020. As economic competitiveness of biofuel production is still not given in most European countries, support policies are essential to achieve this target. Second generation technologies have still not attained marketability, wherefore biofuel consumption will continue to significantly affect agricultural markets. Furthermore, biofuel trade receives more attention. Apart from Brazil the USA has evolved to one of the key biofuel producer in recent years replacing the EU as the dominant biodiesel exporter. Those developments in regions outside the EU have to be considered within the evolution of biofuel markets. The primary objective of this paper is to analyse in detail impacts of future biofuel developments on agricultural markets under several assumptions regarding the availability of 2nd generation technologies, the EU support policy framework and the EU trade policy regime. Therefore, we developed an extended version of the comparative static agricultural sector model CAPRI which covers global biofuel markets with a detailed focus on Europe. The results supplement already existing model-based impact assessments while focussing on EU Member State level and introducing global bilateral trade of biofuels based on the Armington approach. The results of our scenario analysis presented in this paper indicate that the European 2020 biofuel target will significantly affect global and European biofuel- as well as agricultural markets. Thereby, global biofuel trade will notably increase, especially flows of biodiesel from the USA and Argentina and of ethanol from Brazil into the EU will increase accentuating the net-importing position of the EU by 2020. On the agricultural markets, we can observe that additional demand caused by European biofuel production will be, on the one hand, partially compensated by substitution effects on the feed market and, on the other hand, mainly filled by increasing imports. Thus, effects on agricultural product prices will also be significant, while effects on EU agricultural production will only be marginal. This leads consequently to only marginal environmental impacts within Europe and confirm the assumption that notable environmental effects caused by EU biofuel production and consumption will mainly take place outside Europe, especially in those countries which are important producers of biofuel feedstock.Agricultural and Food Policy, Crop Production/Industries, Environmental Economics and Policy, International Relations/Trade, Land Economics/Use, Resource /Energy Economics and Policy,

Estimación de las ganancias mínimas que debe garantizar la creación de un centro de intercambio de derechos de agua en la Cuenca del Segre.

Nuestro modelo es evaluar las ganancias que deberían generar la creación de un centro de intercambio de gestión individual en zona regable del Canal de Urgel para que tal centro resultase beneficioso para la comunidad de regantes. La zona regable del Canal de Urgel ocupa más de 70000 ha de regadío. La red de riego del Canal de Urgel está constituida por canales, acequias y alimentadores que conforman un sistema de aproximadamente 3000 Km. Las acequias que se nutren de agua provinente del drenaje de parcelas ya regadas se denominan alimentadores. Más del 11.8% de la superficie es regada con agua procedente de alimentadores. La creación de un centro de intercambio de gestión individual permitiría a cada unidad de riego decidir el volumen de agua a utilizar y el volumen a ceder a dicho centro. Sin embargo, sin medición volumétrica la cesión individual de derechos es altamente problemática. Por otra parte la modernización de la red de impediría el uso del agua proveniente de los alimentadores. En ausencia de medición volumétrica tal modernización solo sería posible crear un centro de intercambio de gestión colectiva donde la comunidad de regantes (y no la unidad de riego individual) actuase como un único decisor. En nuestro trabajo estimamos, a través de modelos económicos de programación matemática positiva, las ganancias asociadas a un centro de gestión colectiva y al sistema de alimentadores y las comparamos con las ganancias asociadas a un centro de intercambio de gestión individual con el objetivo de determinar las ganancias mínimas que debería reportar la creación de un mercado de derechos de gestión individual para que representase una verdadera mejora sobre otros sistemas de riego

A generic template for FSSIM

The aim of this report is to describe the generic template of the Farm System Simulator FSSIM) designed to be applied for any farming systems across Europe for simulating farmer behaviour and assessing policy impacts. FSSIM is a bio-economic farm model which integrates biophysical processes, farm decision making and resource endowment. It consists of an agricultural management module (FSSIM-AM) and a mathematical programming model (FSSIM-MP). FSSIM-AM aims to identify current and alternative activities and to quantify their input output coefficients (both yields and environmental effects). FSSIM-MP seeks to describe the farmer’s behaviour given a set of biophysical, socio-economic and policy constraints and to predict his/her reactions under news technologies, policy and market changes

Impacts of European Biofuel Policies on Agricultural Markets and Environment under Consideration of 2nd Generation Technologies and international Trade

Even though recent discussions on food prices and indirect land use change point at potential conflicts associated with the production of biofuels the appraisal of biofuels as an effective instrument to slow down climate change and reduce energy dependency still prevails. The EU Renewable Energy Directive (EUROPEAN COMMISSION, 2009) underlines this trend by setting a target of 10% share of energy from renewable sources in the transport sector by 2020. As economic competitiveness of biofuel production is still not given in most European countries, support policies are essential to achieve this target. Second generation technologies have still not attained marketability, wherefore biofuel consumption will continue to significantly affect agricultural markets. Furthermore, biofuel trade receives more attention. Apart from Brazil the USA has evolved to one of the key biofuel producer in recent years replacing the EU as the dominant biodiesel exporter. Those developments in regions outside the EU have to be considered within the evolution of biofuel markets. The primary objective of this paper is to analyse in detail impacts of future biofuel developments on agricultural markets under several assumptions regarding the availability of 2nd generation technologies, the EU support policy framework and the EU trade policy regime. Therefore, we developed an extended version of the comparative static agricultural sector model CAPRI which covers global biofuel markets with a detailed focus on Europe. The results supplement already existing model-based impact assessments while focussing on EU Member State level and introducing global bilateral trade of biofuels based on the Armington approach. The results of our scenario analysis presented in this paper indicate that the European 2020 biofuel target will significantly affect global and European biofuel- as well as agricultural markets. Thereby, global biofuel trade will notably increase, especially flows of biodiesel from the USA and Argentina and of ethanol from Brazil into the EU will increase accentuating the net-importing position of the EU by 2020. On the agricultural markets, we can observe that additional demand caused by European biofuel production will be, on the one hand, partially compensated by substitution effects on the feed market and, on the other hand, mainly filled by increasing imports. Thus, effects on agricultural product prices will also be significant, while effects on EU agricultural production will only be marginal. This leads consequently to only marginal environmental impacts within Europe and confirm the assumption that notable environmental effects caused by EU biofuel production and consumption will mainly take place outside Europe, especially in those countries which are important producers of biofuel feedstoc

Climate Change, Water Scarcity in Agriculture and The Country-Level Economic Impacts. A Multimarket Analysis

Climate Change, Water Scarcity in Agriculture and the Country-Level Economic Impacts. A Multimarket Analysis. Abstract: Agriculture could be one of the most vulnerable economic sectors to the impacts of climate change in the coming decades. Considering the critical role that water plays for agricultural production, any shock in water availability will have great implications for agricultural production, land allocation, and agricultural prices. In this paper, an Agricultural Multimarket model is developed to analyze climate change impacts in developing countries, accounting for the uncertainty associated with the impacts of climate change. The model has a structure flexible enough to represent local conditions, resource availability, and market conditions. The results suggest different economic consequences of climate change depending on the specific activity, with many distributional effects across region

Economic impacts of climate change on agrifood markets: A bio-economic approach with a focus on the EU

Projections for world food production and prices play a crucial role to evaluate and tackle future food security challenges. Understanding how these projections will be affected by climate change is the main objective of this study. By means of a bio-economic approach we assess the economic impacts of climate change on agrifood markets, providing both a global analysis and a regionalised evaluation within the EU. To account for uncertainty, we analyse the IPCC emission scenario A1B for the 2030 horizon under several simulation scenarios that differ in (1) the climate projection, from HadleyCM3 (warm) or ECHAM5 (mild) global circulation models; and (2) the influence of CO2 effects. Results of this study indicate that agrifood market projections to 2030 are very sensitive to climate change uncertainties and, in particular to the magnitude of the carbon fertilization effect

¿Pueden los instrumentos económicos contribuir a la sostenibilidad del regadío en las regiones mediterráneas?

En este trabajo se evalúa la contribución de los instrumentos económicos al uso sostenible del agua de riego utilizando el modelo de programación matemática, MASIA. Aplicamos el análisis a una zona del noreste español donde la demanda creciente de agua para usos no agrícolas, la creación de nuevos distritos de riego y el proceso de cambio climático, requerirán una redistribución de los derechos de uso de agua. Caracterizamos el comportamiento de los agricultores introduciendo el progreso técnico así como restricciones de carácter institucional, medioambiental y técnico. Evaluamos los efectos económicos y medioambientales de varios instrumentos de política y analizamos las posibilidades de cesión e intercambio de agua entre diversas comunidades. Por último, mesuramos las pérdidas asociadas a asignaciones no eficiente de los derechos de riego y puntualizamos las características institucionales que facilitarían una gestión eficiente y sostenible del sistema de rieg

Methodology to assess EU Biofuel Policies: The CAPRI Approach

This report is based on the outcome of a study carried out by the European Commission's Joint Research Centre - Institute for Prospective Technological Studies (JRC-IPTS, Spain) in cooperation with EuroCARE (Bonn, Germany). The report provides a detailed description of the methodology developed to assess the implications of the European Renewable Energy Directive on the agricultural sector, with an explicit focus on regional effects of biofuel targets in the EU. For the analysis, the spatial agricultural sector model CAPRI has been extended to include a global representation of biofuel markets (with endogenous supply, demand and trade flows for biofuels and biofuel feedstocks) while keeping the focus on regional impacts in the EU. The model is capable to simulate the impacts of EU biofuel policies on food production and prices, the potential use of by-products in the feed chain, the increasing pressure on marginal and idle land and the share of imported biofuels (self-sufficiency indicators). CAPRI is now able to jointly assess biofuel and agricultural policies, including policy instruments defined at the Member State level. The CAPRI biofuel module allows for a detailed analysis of most relevant biofuel support instruments like consumer tax exemptions, quota obligations, import tariffs and other trade measures. Additionally, the model allows for analysing scenarios regarding technical progress in 2nd generation technologies for biofuels