Title: Cost recovery and water pricing: the influence of current charging of irrigation water on users' willingness to pay

Authors: Dimitra Lazaridou; Anastasios Michailidis; Marios Trigkas

Addresses: Laboratory of Forest Economics, Faculty of Forestry and Natural Environment, Aristotle University of Thessaloniki, University Campus, 54124 Thessaloniki, Greece ' Laboratory of Agricultural Extension and Rural Sociology, Department of Agricultural Economics, Faculty of Agriculture, Aristotle University of Thessaloniki, University Campus, 54124 Thessaloniki, Greece ' Laboratory of Forest Economics, Faculty of Forestry and Natural Environment, Aristotle University of Thessaloniki, University Campus, 54124 Thessaloniki, Greece

Abstract: The cost recovery approach is introduced by the Water Framework Directive poses an important challenge for Greece, where agricultural users traditionally pay water charges according to the irrigated land area. Given that the viability of farming depends largely on the efficient use of agricultural water, the full cost recovery could be an incentive for the sustainable use of water resources and a factor contributing to the sustainability of irrigated agriculture. This survey attempts to investigate irrigators' willingness to pay any extra money in order to attain the water quality targets set by the WFD. In particular, it is estimated the value that farmers, with heterogeneous characteristics related to irrigation conditions, place on water quality improvement. As it arises from the results, the current charging of irrigation water constitutes a crucial factor in shaping their willingness to contribute monetarily for the environmental protection and restoration of water.

Keywords: cost recovery; water pricing; environmental charge; irrigation water; Water Framework Directive.

DOI: 10.1504/IJSAMI.2020.112088

International Journal of Sustainable Agricultural Management and Informatics, 2020 Vol.6 No.3, pp.241 - 249

Received: 04 Dec 2019
Accepted: 21 Feb 2020
Published online: 04 Jan 2021 *

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