Valuation and pricing of irrigation water: an analysis in greek agricultural areas

Greece is a typical Southern European country in which the agricultural sector is the
major consumer of water, a fact that has potential impacts on the water resources
efficient allocation and management. The record-high percentage of the agricultural water
use at the national level, together with a fairly loose system of water management, point
out that there is a certain need for reform in related policies, including the pricing system
for the provision of water services to agriculture uses. The paper presents current
information and figures regarding the overall situation of irrigated agriculture in Greece
and its relation to water management issues. It also illustrates a number of case studies
pertinent to this sectoral water economy. A common element in all these studies is the
application of appropriate methodologies that aim at valuating water for irrigation and
assessing current and potential future systems of agricultural water pricing. In face of the
prospect of Greece conforming to the European Water Framework Directive, the
presented applications add to the ongoing debate on the applicability of the principle of
full cost recovery of water services in European countries.