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Agricultural Subsidies, Water Pricing and Farmers’ Responses: Implications for Water Policy and CAP Reform

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Agricultural Use of Groundwater

Abstract

Agricultural policies have major impacts on other sectoral policies such as water or environmental policies. In Mediterranean countries with large irrigation acreages, agricultural policy is one of the most important factors affecting irrigation water demand. The kinds of subsidies, barriers to trade or market interventions in place largely dictate what irrigated crops farmers are willing to grow and to what extent farmers are likely to respond to various water pricing policies. While most OECD countries, with the European Union at the forefront, are progressing towards charging water consumers for the costs they impose on the water supply systems, many of them still promote irrigation projects, seek market protection for certain crops, and establish generous grandfathering provisions for irrigators’ obligation to pay higher water rates (OECD, 1999; Garrido, 1998; Dinar and Subramanian, 1997).

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Calatrava, J., Garrido, A. (2001). Agricultural Subsidies, Water Pricing and Farmers’ Responses: Implications for Water Policy and CAP Reform. In: Dosi, C. (eds) Agricultural Use of Groundwater. Fondazione Eni Enrico Mattei (FEEM) Series on Economics, Energy and Environment, vol 17. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-9781-4_11

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  • DOI: https://doi.org/10.1007/978-94-015-9781-4_11

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-90-481-5650-4

  • Online ISBN: 978-94-015-9781-4

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