Increase the visibility of your scientific production by authorizing the export of your publications to HAL!

Water Allocation, Crop Choice, and Priority Services

Salanié, François and Zaporozhets, Vera (2021) Water Allocation, Crop Choice, and Priority Services. TSE Working Paper, n. 21-1235, Toulouse, France

Download (274kB) | Preview
Official URL :


We analyze the problem of allocating irrigation water among het- erogenous farmers when water supply is stochastic. If farmers are risk-neutral, a spot market for water is e¢ cient; while the oft-used uniform rationing system is ine¢ cient, both ex-ante and ex-post. In- deed, we show that it leads farmers to overexpose to risk, thus making shortages more severe and more frequent in case of drought. We pro- pose instead a regulation by priority classes extending Wilson (1989), and we derive an e¢ ciency result. We characterize the set of farmers that would win or loose from such a reform. We also argue that a system of priority classes may be preferred to a spot market system, because scarcity is easier to manage ex-ante than ex-post, and because this system facilitates the supply of insurance to risk-averse agents.

Item Type: Monograph (Working Paper)
Language: English
Date: July 2021
Place of Publication: Toulouse, France
Uncontrolled Keywords: Water, Irrigation, Priority Classes, Rationing
JEL Classification: Q15 - Land Ownership and Tenure; Land Reform; Land Use; Irrigation
Q25 - Water
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 28 Jul 2021 07:16
Last Modified: 01 Sep 2021 08:41
OAI Identifier:

Actions (login required)

View Item View Item


Downloads per month over past year