Title: A bi-objective model for analysing the potential impacts of water pricing and regulation strategies on the performance of irrigated agriculture

Authors: Panagiotis Mitropoulos; Konstantinos Vasileiou; Ioannis Mitropoulos

Addresses: Laboratory of Business Planning and Decision Making, Department of Business Administration, Technological Educational Institute of Western Greece, GR-26500 Patras, Greece ' Laboratory of Business Planning and Decision Making, Department of Business Administration, Technological Educational Institute of Western Greece, GR-26500 Patras, Greece ' Laboratory of Business Planning and Decision Making, Department of Business Administration, Technological Educational Institute of Western Greece, GR-26500 Patras, Greece

Abstract: Regulations are the most common public policy instrument for governments to support sustainable agriculture, including rules governing land and water use, chemical inputs and food quality. Irrigated agriculture in Europe has been directly influenced by changes in the regulatory context by various EU policies based upon the price of water. This study aims to assess the multiple impacts of the Common Agricultural Policies (CAP) on social sustainability in rural areas. The consequences of policy change were evaluated, using a bi-objective linear programming model that simulates farmers' preferred behaviour. The output of the model consists of economic, social and environmental indicators aimed at quantifying the impact of the scenarios on different aspects of sustainability relevant for irrigated farming systems. The results show a clear trade-off between socio-economic and environmental sustainability. This emphasises the need to balance water conservation with agricultural policy and rural development objectives. The approach is illustrated using a case study on fruit production in East Anglia, UK.

Keywords: agricultural planning; irrigation; licensing; water pricing; modelling; regulation strategies; sustainable agriculture; sustainable development; European Union; EU policies; Common Agricultural Policy; CAP; social sustainability; rural areas; bi-objective linear programming; simulation; farmer preferences; preferred behaviour; economic sustainability; environmental sustainability; water conservation; rural development; case study; fruit production; UK; United Kingdom.

DOI: 10.1504/IJGE.2015.075199

International Journal of Green Economics, 2015 Vol.9 No.3/4, pp.291 - 315

Received: 18 Dec 2015
Accepted: 20 Dec 2015
Published online: 07 Mar 2016 *

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