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Technological change in irrigated agriculture in a semiarid region of S pain
Author(s) -
Philip JeanMarc,
SánchezChóliz Julio,
Sarasa Cristina
Publication year - 2014
Publication title -
water resources research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.863
H-Index - 217
eISSN - 1944-7973
pISSN - 0043-1397
DOI - 10.1002/2014wr015728
Subject(s) - computable general equilibrium , water pricing , agriculture , context (archaeology) , technological change , environmental science , climate change , water resources , natural resource economics , irrigation , water use , water framework directive , business , water conservation , water resource management , economics , geography , water quality , agronomy , ecology , archaeology , biology , macroeconomics
Technological change plays a decisive role in irrigated agriculture, which is particularly challenging in semiarid regions. The main objective of this paper is to assess four kinds of alternative technological improvements aimed at dealing with future water availability, especially in the case of extreme events like drought. We evaluate these technologies for a better understanding of what form should be applied in irrigated agriculture in a context of limits on natural resources. We develop a dynamic computable general equilibrium (CGE) model, whose production structure distinguishes between rainfed and irrigated crops, and between a variety of irrigated crops. Land use changes are also evaluated. As well as technological change, we consider the Water Framework Directive (EC 2000/60), which establishes water cost recovery as a key goal. Thus, we assess strategies that combine irrigation water pricing strategies and improved technology. Our results show that policy strategies that focus on fostering technical progress can mitigate the long‐term economic effects of downward trends in water supplies, even in drought years. The study also confirms that the absence of price volatility achieved through a water pricing strategy could improve the sustainable use of water.