Transcript Water Management in the Ebro Basin

Water Management in the Ebro Basin
Workshop „Water for Aragon“
Darmstadt, 28.11.-30.11.2003, Institute of Applied Geosciences,
Darmstadt University of Technology
Economic Aspects of Water Management
in the Ebro Basin
J. Albiac
Unidad de Economía Agraria
Centro de Investigación y Tecnología Agroalimentaria de
Aragón
Diputación General de Aragón
Water Management in the Ebro Basin
CONTENTS
1. Water resources in Spain and in the Ebro basin
2. Economic evaluation of water management
policies in the Ebro basin:
Common Agricultural Policy
Water Framework Directive
National Hydrologic Plan
National Irrigation Plan
Water Management in the Ebro Basin
Basin planning units in Spain
Water Management in the Ebro Basin
Water use and forecasts in Ebro, Júcar and Segura basins (hm3)
Ebro Basin
Current
1995
1st horizon
2005
2nd horizon
2015
Increment Basin
Hydrologic Plan
Irrigation
6310
8213
9879
3569
Urban
313
338
358
45
Industrial
415
534
534
119
Increment National
Hydrologic Plan
Júcar Basin
Current
1995
1st horizon
2005
2nd horizon
2015
Increment Basin
Hydrologic Plan
Increment National
Hydrologic Plan
Irrigation
2284
2420
2580
296
141 includ. environm.
Urban
563
613
686
123
123
Industrial
80
92
116
36
36
Segura Basin
Current
1995
1st horizon
2005
2nd horizon
2015
Increment Basin
Hydrologic Plan
Increment National
Hydrologic Plan
Irrigation
1639
1639
1639
0
362 includ. environm.
Urban
172
180
184
12
43
Industrial
23
38
38
15
15
Water Management in the Ebro Basin
Demand and availability in Basins and Ebro transfers (hm3)
Ebro water transfer
according to National Hydrologic
Plan
Demand and availability
according to Basin Plans
Demand
Availability
Water transfer volume
Ebro
7038
17036
-1050
Júcar
2927
3482
300
Segura
1834 (1445 NHP)
803
420
Sur
1350
2351
100
Water Management in the Ebro Basin
Ebro water flow at Tortosa (hm3/year)
Water Management in the Ebro Basin
Watersheds in the Ebro basin
Water Management in the Ebro Basin
Autonomous Communities (states) in the Ebro basin
Water Management in the Ebro Basin
Population 1900–2001
SPAIN
Aragon
Catalonia
Community of
Valencia
1900
18.616.630
912.711
1.966.382
1.587.533
1910
19.990.669
952.743
2.084.868
1.704.127
1920
21.388.551
997.154
2.344.719
1.745.514
1930
23.677.095
1.031.559
2.791.292
1.896.738
1940
26.014.278
1.058.806
2.890.974
2.176.670
1950
28.117.873
1.094.002
3.240.313
2.307.068
1960
30.582.936
1.105.498
3.925.779
2.480.879
1970
33.956.047
1.152.708
5.122.567
3.073.255
1981
37.742.561
1.213.099
5.958.208
3.646.765
1991
39.433.942
1.221.546
6.115.579
3.923.841
2001
41.116.842
1.199.753 (3%)
6.361.365
4.202.608
Water Management in the Ebro Basin
Gross Domestic Product by region (1,000 €)
Region
1995
1999
2000
2001
Aragon
14,302,189
15,922,526
16,591,164
17,023,594 (3%)
Catalonia
82,752,572
94,088,998
97,700,146
99,911,085
Valencia
41,374,468
48,994,449
51,290,348
53,012,062
Spain
437,787,000
506,846,000
527,613,000
542,166,000
Water Management in the Ebro Basin
The water sector in Spain
Spain is a country with a land surface of 506,000
km2 and annual precipitations around 346.000 hm3
(684 mm), with large spatial and temporal rainfall
variation.
Total river flow is 110,100 hm3, with a water storage
capacity of 56,100 hm3, and an average storage
around 25,000 hm3.
Water flows in the Economy
Water Management in the Ebro Basin
Direct abstractions
Agriculture
Water supply
companies
Other productive
sectors
26.475
5.163
2.049
Utilization
Irrigation
19.775
Water losses in distribution
4.517
1.086
Household consumption
2.354
Other productive sectors
(industries and services)
1.723
2.049
Abstraction from agriculture is 26.475 hm3 and utilization 19.775 hm3
(rest are losses in distribution)
Water supply companies abstractions are 5.163 hm3 supplying 2.354 to
households and 1.723 to industries and service sector
Industries and service sector direct abstractions are 2.049 hm3
Returns and discharges to environment are 8.721 hm3 from agriculture
and 2.264 hm3 from urban and industrial users
Water Management in the Ebro Basin
Water flows between economy and environment 1999 (1000 m3)
Water Management in the Ebro Basin
Importance of irrigation in Spain
Irrigated area in Spain reaches 3.53 million ha,
distributed between 2.16 million ha of arable crops and
0.84 millions of tree crops.
Cereals fill 1,093,000 ha generating an income of 1,105
million €
“Industrial” crops (sunflower, sugar beet) fill 559,000
ha with 612 million € of revenue
Vegetables area is 379,000 ha generating a revenue of
4,885 million €
Citric and non-citric fruit trees fill 540,000 ha and
generate 2,400 million €.
Water Management in the Ebro Basin
Cereals and “industrial” crops have an average revenue
per cubic meter much lower than fruits and vegetables:
0.13 €/m3 for cereals
2.00 €/m3 for vegetables and
0.75 €/m3 for fruit trees.
Revenue of water in industrial sectors with sizable
water demand is much higher:
84.3 €/m3 in the agro-food industry
83.1 €/m3 in the chemical industry
71.7 €/m3 in the paper industry.
The average revenue of these industries is between 50
and 100 times large than the more profitable
agricultural sectors such as vegetables and fruit trees.
Water Management in the Ebro Basin
Water prices
Prices in the urban sector are close to 0.70 €/m3
Prices in agriculture are much lower, 0.02 €/m3
The value of water environmental services could be
high, although no valuation studies are available
Irrigation in Aragón
Water Management in the Ebro Basin
Irrigation acreage in the Ebro basin is around 850,000
ha, of which 370.000 ha in Aragón
Water Management in the Ebro Basin
Acreage and water use by crop group in Aragón (2002)
Cereals, alfalfa, sunflower
Vegetables
Fruits
Total
Acreage (ha)
Water use (hm3)
298,445
8,927
61,670
369,042
2,296
49
525
2,869
Water use and losses by irrigation system in Aragón (2002)
Water use (hm3)
Losses (hm3)
Surface
2,083
833
Sprinkle
603
121
Drip
184
18
Total
2,869
972
Water Management in the Ebro Basin
Cereals in Aragón
Water Management in the Ebro Basin
Vegetables in Segura basin
Water Management in the Ebro Basin
Economic evaluation of water management policies
Common Agricultural Policy
The changes of the Common Agricultural Policy by the Agenda 2000 and
the modification of 2003, imply the gradual liberalization of agricultural
markets, the reduction in support levels, and the strengthening of
environmental requirements.
Water Framework Directive
The new Water Framework Directive promotes water prices close to full
recovery costs and establishes pollution emissions restrictions and quality
standards to achieve “good status” for all waters.
National Hydrologic Plan
The NHP main project is the Ebro water transfer to solve water scarcity and
degradation in Southeast Spain.
National Irrigation Plan
The NIP objective is to modernize and improve irrigation facilities in
Spanish agriculture.
Water Management in the Ebro Basin
Effects of CAP changes in Aragon
Revenue per hectare by county
2006 and 2012 horizons
Water Management in the Ebro Basin
Net income per hectare by county
2006 and 2012 horizons
Water Management in the Ebro Basin
Direct payments per hectare by county
2006 and 2012 horizons
Water Management in the Ebro Basin
Water Framework Directive
-
The new WFD promotes water prices close to full recovery costs
(including environmental costs) in order to induce water conservation
and sustainable management of water resources (problem in southern
Europe with prices to solve aquifer degradation).
-
The Directive establishes a combination of emissions restrictions and
quality standards, with specific deadlines to achieve an appropriate
quality for all waters and the management implementation of water
based on watersheds and user participation.
-
Management of water irrigation demand in Spain is going to acquire a
key role as a consequence of the Water Framework Directive.
-
Nitrate pollution in Spain affects specially the Mediterranean coast and
the Ebro and Guadalquivir watersheds because of the excessive fertilizer
application.
Water Management in the Ebro Basin
Nonpoint pollution from nitrates
-Several studies have examined the cost-efficiency of alternative
measures to abate nitrogen leaching for some crops (Yadav 1997, Vickner
et al. 1998, Martínez 2002), but ranking measures is contingent not only
upon crop type but also upon soils.
-We have analyzed the measures to reduce nitrate leaching under soil
heterogeneity, ranking measures by their cost-efficiency.
Water Management in the Ebro Basin
STUDY AREA
• 17 municipal districts in Huesca
province (85.000 Ha).
• Sotonera reservoir 187 Hm 3.
• Information collected
– Agronomic data and crop
management operations by
soil type.
– Weather information.
– Water management practices
by the irrigation district
associations.
– Surface irrigation is the
prevailing system.
Water Management in the Ebro Basin
Soils
Soil
Productivity
Acreage
(ha)
WHCa
Efficiencyb
ECc
Unit
Series
AG0
Chacilla
High
2,478
1,800
60
2.5
AG1
Planteros
Low
7,558
730
40
2.5
AG2
Corralete
s
Intermediate
17,263
2,043
60
8.0
AG3
Valfonda
Low (high salinity)
4,944
2,680
80
12.0
AG4
Planteros
Low (dryland)
691
1,350
-
2.8
WHC Water holding capacity (m3/ha).
EC Salinity (Electric conductivity, dS/m).
Water Management in the Ebro Basin
The economic model developed includes a pollution function in order
to assess water pollution from agricultural activities in the FlumenMonegros area of the Ebro basin
The crop production and nitrate pollution functions for corn have
been estimated using the EPIC crop growth package, that
incorporates local information on climate, soils, tillage and operations
for crop activities.
Water Management in the Ebro Basin
DYNAMIC MODEL
The objective function is the maximization of social welfare
Quasi-rent – pollution damage
T
Max
x ,n
1
 (1  r )  p
t
t
f ( x t , n t , g t )  p x x t  p n n t  k  s   z t     le t
t 1
MODEL
subject to
g t 1  g t  n t  le t  v t  u t
Where:
le t  h ( x t , n t , g t )
vt    nt
ut    ft
Nitrogen in soil balance equation
Leaching function
Volatilization function
Nitrogen uptake by plant function
xt , nt water (mm/ha) and nitrogen (kg/ha) inputs, gt nitrogen in soil
(kg/ha), zt corn crop area by soil type, p corn price (€/kg), px water
price (€/mm), pn nitrogen price (€/kg), s subsidies (€/ha), k fixed
costs (€/ha),
Water Management in the Ebro Basin
Corn production function
10
7.5
5
2.5
0
0
1000
800
600
100
400
200
300
Nitrogen (kg/ha)
200
400
500
Water (mm/ha)
Water Management in the Ebro Basin
Función de contaminación
Abonado de nitrógeno
(kg/ha)
Agua (mm/ha)
Water Management in the Ebro Basin
Results
Chacilla
Planteros
Corraletes
Total District
Welfare
(1,000 €)
Leaching
(Tons)
Welfare
(1,000 €)
Leaching
(Tons)
Welfare
(1,000 €)
Leaching
(Tons)
Welfare
(1,000 €)
Leaching
(Tons)
1,652
54
403
68
1,572
214
3,627
336
0.06 €/m3
1,311
47
262
65
1,140
213
2,713
325
0.09 €/m3
1,121
45
184
64
897
214
2,202
323
0.9 €/kg
1,556
52
366
60
1,473
170
3,395
282
1.2 €/kg
1,416
50
331
53
1,384
128
3,176
231
Nitrogen standard
1,617
32
417
38
1,660
90
3,694
160
Emission tax
1,716
49
473
44
1,756
79
3,945
172
Base scenario
Water price
Nitrogen price
Control measures can be discriminated by soil type (and by crop)
The first best instrument is an emission tax, but not feasible
The second best instrument is a standard on fertilizer, applied in
vulnerable soils Planteros and Corraletes
Land use tax, linked to soil and crop (transaction costs?)
Water Management in the Ebro Basin
National Hydrologic Plan: Ebro Water Transfer
Water demand scenarios in Levante and NHP allocation (hm3)
Júcar basin
Segura basin
South basin
Total Levante
...by banning aquifer overexploitation
157
226
71
454
...by increasing 0.12 €/m3 water prices
141
263
37
441
...by increasing 0.18 €/m3 water prices
325
327
51
703
300
420
100
820
agricultural and environmental use
141
362
58
561
urban and industrial use
159
58
42
259
863
215
112
1,190
Water Demand Reduction for
Agricultural Use…
NHP Allocation
All uses
Effective Demand of Water for
Agricultural Use…
...at prices for transferred water (0.19 to
0.75 €/m3)
Water Management in the Ebro Basin
Net income losses under alternative scenarios and subsidies (million €/year)
Júcar
basin
Segura
basin
South
basin
Total
Levante
... by banning aquifer overexploitation
24
76
204
304
... by increasing 0.12 €/m3 water prices
180
94
21
294
... by increasing 0.18 €/m3 water prices
263
129
30
423
52
169
44
265
Net Income Losses to Farmers...
Subsidies Needed for the NHP…
… to cover the gap between transferred
water costs (0.19 to 0.75 €/m3) and
present low water prices
Water Management in the Ebro Basin
Description of the model
Scope: 35 counties,
423.000 ha of irrigated
acreage
• 94% Valencia
• 80% Murcia
• 86% Almería
Crops: Orange, mandarin,
lemon, peach, apricot and
almond trees, vineyards,
olive trees, lettuce, tomato,
artichoke, melon, pepper,
onion, watermelon, bean,
pumpkin, cucumber,
broccoli, potato, wheat,
barley, corn, rice, alfalfa,
and sunflower. Tomato,
pepper, melon, bean, and
watermelon crops can be
cultivated protected (green
house) or not protected.
Methodology: Linear
programming
Objective function: Net
income
•
•
•
•
80 crop activities
and 60 constraints
22 soil constraints
12 water constraints
12 labor constraints
Study financed by
the Spanish Ministry
of Environment and
the Aragón Government
Water Management in the Ebro Basin
National Irrigation Plan
Modernization and improvement of irrigation management
Cost-benefit analysis of investments in modernization:
- network channels
-field irrigation systems (surface to sprinkle and drip)
-changes in nonpoint pollution
Cost-benefit analysis with and without public subsidies
Possibility of expanding high profitable crops (vegetables)
Water Management in the Ebro Basin
Study area: Cinco Villas county in the Bardenas irrigation district
• 28 villages (65.000 ha).
• Corn and alfalfa (50%), barley
and wheat (30%), vegetables (3%).
• Irrigation: surface (92%).
• Efficiency: 50%
Water Management in the Ebro Basin
Cost-benefit analysis of investments with subsidies
Net Present Value by crop (€/ha, including damage of nitrate pollution)
Crop
Corn
Barley
Wheat
Alfalfa
Sunflower
Tomato
Pepper
Corn
Barley
Wheat
Alfalfa
Sunflower
Tomato
Pepper
Solid-set
Sprinkle
Pivot
Central Government
-268
781
-3.179
-2.131
-1.779
-731
-3.426
-2.378
-2.272
-1.223
Autonomous (State) Government
2.020
2.651
-892
-261
508
1.139
-1.139
-507
15,8
647
-
Drip
47.106
23.249
49.224
25.368
Water Management in the Ebro Basin
Additional questions:
-Effects of modernization on water flow in basin (reduction 1000 hm3)
-Environmental effects of expanding high profitable crops (vegetables)
Variables
Acreage (ha)
Corn (ha)
Barley (ha)
Wheat (ha)
Alfalfa (ha)
Sunflower (ha)
Rice (ha)
Tomato (ha)
Pepper (ha)
Set-aside CAP (ha)
Revenue (106 €)
Net income (106 € )
Water use (hm3)
Nitrogen use (MT)
Labor use (man-years)
Percolation (hm3)
Nitrogen leaching (MT)
Base
14.284
3.718
819
1.589
3.959
1.833
530
220
606
1.010
17,5
10,3
97
2.398
355
33
455
Vegetables surface
14.284
5.714
8.570
71,3
43,4
111
3.072
2.330
54
903
Vegetables drip
14.284
5.714
8.570
98,1
70,1
57
2.912
2.258
5
34
Water Management in the Ebro Basin
Work to be done
Generate information relevant for the Water Framework Directive:
Current situation of watersheds (2004)
Management plan and measures (2008)
Year
Issue
Reference
2000
Directive entered into force
Art. 25
2003
Transposition in national legislation
Identification of River Basin Districts and Authorities
Art. 23
Art. 3
2004
Characterization of river basin: pressures, impacts and economic analysis
Art. 5
2006
Establishment of monitoring network
Start public consultation (at the latest)
Art. 8
Art. 14
2008
Present draft river basin management plan
Art. 13
2009
Finalize river basin management plan including progam of measures
Art. 13 & 11
2010
Introduce pricing policies
Art. 9
2012
Make operational programs of measures
Art. 11
2015
Meet environmental objectives
Art. 4
2021
First management cycle ends
Art. 4 & 13
2027
Second management cycle ends, final deadline for meeting objectives
Art. 4 & 13
Water Management in the Ebro Basin
Analytical tools → Agricultural and land use activities models, to assess water
resource quantities and nonpoint pollution (nutrients, salts, pesticides)
Example of new information technologies: evapotranspiration using remote sensing