Economic modelling of water storage, irrigation and crop choice under water scarcity

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2023
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Abstract
In the context of climate change's impact on water resources, this thesis investigates three adaptive strategies for water use in agriculture: - Changing the irrigation policy: Examining farmers' responses to water availability uncertainty, especially for permanent crops, the study employs a dynamic economic model considering intertemporal effects. The results emphasize the tradeoff between water dose and crop area under water restrictions, crucial for optimal irrigation decisions.- Water storage policies: Addressing the need for efficient water management, the research focus on dam operating rules. Integrating rational expectations, the study develops optimal storage policies based on expected future water resources. Findings underscore the importance of bounded capacity in mitigating the effects of decreased mean water inflows.- Changing the crop mix: Exploring water scarcity's impact on crop choice in low- to medium-income nations, the study proposes an economic model where water, not land, is the primary decision variable for farmers. The research employs a multinomial logistic structure to analyze water allocations for crop choices in Peru.This interdisciplinary research integrates dynamic economic modeling to provide insights into optimal irrigation, water storage, and crop choice strategies, contributing to understanding adaptive responses amid changing climatic conditions and resource pressures.
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Tesis (Doctor en Ciencias de la Agricultura)--Pontificia Universidad Católica de Chile, 2023
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