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We provide empirical evidence that attitude towards risk is important when assessing the impact of conservation policies on production choices. We �first follow the approach used by Antle (1987) which enables �flexible estimation of the stochastic technology without ad hoc specifi�cation of risk preferences. In a second step, the impact of water quotas on farmer decisions can be solved, using risk aversion and technology parameter estimates. Application is made on a farm-level data-set from the agricultural region of Kiti in Cyprus.

The use of modern irrigation technologies has been proposed as one of several possible solutions to the problem of water resource scarcity and environmental degradation in many agricultural areas around the world. The main objective of this paper is to present a theoretical framework that conceptualizes adoption as a decision process involving information acquisition by farmers who face yield uncertainty and vary in their risk preferences. This is done by integrating the microeconomic foundations used to analyze production uncertainty at the farm level with the traditional technological adoption models. First we follow the approach of Antle (1987) based on higher-order moments of profit, which enables flexible estimation of the stochastic technology without ad hoc specification of risk preferences. Then individual risk preferences are derived, which are then used to explain farmer’s decision to adopt modern water saving technologies. The proposed model is applied to a randomly selected sample of 265 farms located in Crete, Greece. Results show that risk preferences affect the probability of adoption and provide evidence that farmers invest in new technologies as a means to hedge against input related production risk.

Egalement paru dans : INRA-ERNA Discussion papers ; 98.04.014; Cet article s'intéresse à la négociation du prix de l'eau entre une municipalité et un opérateur privé, ainsi que ses conséquences pour l'estimation de la demande domestique en eau potable. Le prix négocié pouvant dépendre de caractéristiques spécifiques à la commune, diverses formes possibles d'endogénéité du prix doivent être prises en compte lors d'études sur données de panel. L'impact des variables telles que le revenu moyen, les types de logement et les éléments du réseau, est analysé à la fois sur la consommation en eau de la commune et sur le prix pratiqué localement. On utilise des méthodes économétriques efficaces pour estimer une équation de demande domestique en eau sur un panel de communes françaises. Les estimations des élasticités prix et revenus sont significatives et proches des valeurs préexistantes obtenues à partir de données individuelles.

[Departement_IRSTEA]Eaux [TR1_IRSTEA]GEUSI; International audience; In developed countries, a number of factors are leading a growing number of households to drill private boreholes as independent water supplies. This chapter describes this phenomenon based on two case studies conducted in Southern France and Western Australia. It shows that, while the development of private wells was encouraged by the authorities in Perth, it is a major source of environmental, public health, economic and social concern for French water utilities. Household's motivations to develop independent supply are then investigated. We finaly discuss how water utilities need to adapt their management practices (setting tariffs, demand forecasting and resource protection) to take into account this phenomenon.