@article{Galioto:330610,
      recid = {330610},
      author = {Galioto, Francesco and Guerra, Elisa and Raggi, Meri and  Viaggi, Davide},
      title = {The impact of new regulations on water pricing in the  agricultural sector: a case study from Northern Italy},
      journal = {Agricultural Economics Review},
      address = {2017},
      number = {875-2023-321},
      year = {2017},
      abstract = {The present study intends to investigate the expected  impact of changes in pricing policies applied to the use of  water resources recently experienced in an agricultural  area located in Northern Italy. The study begins  introducing the pricing criterion adopted by a water  authority in different region supplied by its irrigation  network. This pricing criterion is, then, analysed in light  of the new regional mandatory requirement on water pricing  and modified accordingly. A methodology is developed to  evaluate the expected impact of the new pricing policy on  the amount of water applied, land allocation and irrigation  technology adoption. The methodology follows a two-step  approach. In a first step we estimate the yield response to  decreased water uses for the main crops cultivated in the  area and for different irrigation techniques. In a second  step, the estimated production function is integrated into  an economic optimisation model to calculate relevant  impacts. The results highlight that the change in pricing  criteria would not cause substantial variations in water  uses. This is mainly due to inelastic demand for water in  agriculture. However, the new pricing criteria incentivize  the adoption of water saving technologies. The study  concludes by addressing that attention should be paid to  synergies of water pricing with co-financing subsidies on  investments for further promoting the adoption of water  saving technologies.},
      url = {http://ageconsearch.umn.edu/record/330610},
      doi = {https://doi.org/10.22004/ag.econ.330610},
}