The choice experiment and the stochastic profit frontier: a methodological approach for groundwater preservation policies

Abstract

Apulia is the fifth Italian region in terms of irrigated area and irrigation water used in agriculture. However, inefficiencies in the management of the regional irrigation consortia force most of farmers to use groundwater by private wells, with negative consequences on soil and crop characteristics, and with grave desertification risk. In the first instance, through a choice experiment survey, the study investigated the aptitude of the regional farmers toward the abandonment of their farm wells in exchange for an improved consortium irrigation network and additional services. Then, through a stochastic profit frontier, the impact of these choices was assessed on the economic performance of farms, providing useful information for suitable and fair groundwater preservation policies.