Instruments for Water Quantity and Quality Management in the Agriculture of Aragon

Abstract

The traditional policy of developing new irrigated areas in Aragon has been changed to irrigation modernization through investments in distribution networks and on-farm irrigation equipment. This new policy creates opportunities to introduce more profitable crops, conserve irrigation water and abate agricultural nonpoint pollution. Several alternatives open to irrigated agriculture are bioethanol and biodiesel technologies (which could provide a support price for grains), the expansion of profitable fruits and vegetables under drip irrigation, and the diversification of water using activities (animal farming, industries, residential areas and sport utilities). Alternative measures to abate agricultural nonpoint pollution are examined in this paper. Modernizing irrigation structures leads to a large reduction of pollution, and introduces reasonable costs to farmers (in terms of their rent). Results also show that water pricing—advocated by the European Water Framework Directive—is a wrong policy in irrigation, because irrigation demand does not respond to prices and also because water pricing is not cost efficient to abate pollution.