food–energy nexus highlights an increased public concern for responsible and efficient use of
natural resources (Allan et al. 2015); however,
there is a need to provide effective policy
implementation tools that comprehensively take
into account the water-energy linkages (Dai et al.
2018). In the arid province of Mendoza, Argentina, groundwater irrigation is vital for agricultural activities. The political will to improve the
profitability of small producers has distorted
economic incentives and led to the creation of
power asymmetries among stakeholders and
decision makers. Political and economic analysis
is conducted in this paper to reveal the reform
arena of public policies that link water and
energy in the agricultural sector.
Local governments are responsible for
designing solid policies that contribute to the
responsible use of natural resources and simultaneously coincide with public preferences.
Institutional settings, lack of information, policy
implementation time-frames, and political influence may obstruct the optimization path of social
welfare (Foster et al. 2016; Dinar 2000; Shah
et al. 2012). When it comes to water demand,
institutional settings are fundamental to empower
stakeholders and set economic incentives. As a
multi-purpose resource, water is demanded as
both a production input and a resource for direct
consumption. Globally, the agricultural sector
employs near 70% of the total water supply
(Dagnino and Ward 2012). Groundwater use for
agriculture became desirable because of the
ability to face production challenges, especially
in scarcity periods. Overexploitation and poor
management of groundwater may lead to irreversible quality degradation (Garduño and Foster
2010). Energy and water policies jointly determine institutional settings and power spaces of
the stakeholders (Azpiazu et al. 2014). Abuse of
economic tools to maintain political power could
jeopardize the sustainability of the resource,
while simultaneously providing inadequate economic incentives for water users (Badiani et al.
2012).
This paper seeks to describe the economic
incentives and behavior of local stakeholders
towards the exploitation of groundwater
resources. The analysis focuses on the economic
and political framework of the water-energy
nexus. The main research questions addressed
are as follows: (1) How are the agricultural irrigation practices influenced by the water and
energy policies, leading to a threat to the Carrizal
aquifer as a complementary irrigation source?
(2) Do local stakeholders have incentives to
consider the environmental effects of groundwater exploitation for production purposes? The
main hypothesis is that energy subsidies for
agriculture irrigation drive farmers’ behavior
towards the exploitation of the aquifer. An integrative review of energy policies from other
perspectives, such as political economy, could
enhance a better understanding of the implications in the context of water management and the
nexus approach.
2 Materials and Methods
2.1 Study Area
The province of Mendoza is located in a semiarid region in the central-west of Argentina
(Fig. 1) and it covers an area of 150,839 km
2 . It
is characterized by its mountainous area, formed
by the Andes mountain range that runs from
north to south. The average rainfall is 220 mm
per year. It has a dry, continental climate characterized by the level of summer rainfall regime
(Morello et al. 2012). During 2013, the provincial GDP reached USD 2.08 billion. The main
economic sectors are commerce, services, and
the manufacturing industry, which jointly represent 60% of the province's GDP (DEIE 2014).
During the last decade, agricultural activities
contributed USD 132 million to the regional
GDP, representing 7% of the total GDP (Medawar et al. 2011). The total irrigated land in
Mendoza reached 267,889 ha in 2017, which
represents 85% of the arable land in the province
and 25% of the national irrigated area (Calcagno
et al. 2000; FAO/PROSAP 2015).
The geographical and environmental characteristics make the province strongly dependent
on water resources for economic development.
130
F. S. Riera and B. Brümmer
natural resources (Allan et al. 2015); however,
there is a need to provide effective policy
implementation tools that comprehensively take
into account the water-energy linkages (Dai et al.
2018). In the arid province of Mendoza, Argentina, groundwater irrigation is vital for agricultural activities. The political will to improve the
profitability of small producers has distorted
economic incentives and led to the creation of
power asymmetries among stakeholders and
decision makers. Political and economic analysis
is conducted in this paper to reveal the reform
arena of public policies that link water and
energy in the agricultural sector.
Local governments are responsible for
designing solid policies that contribute to the
responsible use of natural resources and simultaneously coincide with public preferences.
Institutional settings, lack of information, policy
implementation time-frames, and political influence may obstruct the optimization path of social
welfare (Foster et al. 2016; Dinar 2000; Shah
et al. 2012). When it comes to water demand,
institutional settings are fundamental to empower
stakeholders and set economic incentives. As a
multi-purpose resource, water is demanded as
both a production input and a resource for direct
consumption. Globally, the agricultural sector
employs near 70% of the total water supply
(Dagnino and Ward 2012). Groundwater use for
agriculture became desirable because of the
ability to face production challenges, especially
in scarcity periods. Overexploitation and poor
management of groundwater may lead to irreversible quality degradation (Garduño and Foster
2010). Energy and water policies jointly determine institutional settings and power spaces of
the stakeholders (Azpiazu et al. 2014). Abuse of
economic tools to maintain political power could
jeopardize the sustainability of the resource,
while simultaneously providing inadequate economic incentives for water users (Badiani et al.
2012).
This paper seeks to describe the economic
incentives and behavior of local stakeholders
towards the exploitation of groundwater
resources. The analysis focuses on the economic
and political framework of the water-energy
nexus. The main research questions addressed
are as follows: (1) How are the agricultural irrigation practices influenced by the water and
energy policies, leading to a threat to the Carrizal
aquifer as a complementary irrigation source?
(2) Do local stakeholders have incentives to
consider the environmental effects of groundwater exploitation for production purposes? The
main hypothesis is that energy subsidies for
agriculture irrigation drive farmers’ behavior
towards the exploitation of the aquifer. An integrative review of energy policies from other
perspectives, such as political economy, could
enhance a better understanding of the implications in the context of water management and the
nexus approach.
2 Materials and Methods
2.1 Study Area
The province of Mendoza is located in a semiarid region in the central-west of Argentina
(Fig. 1) and it covers an area of 150,839 km
2 . It
is characterized by its mountainous area, formed
by the Andes mountain range that runs from
north to south. The average rainfall is 220 mm
per year. It has a dry, continental climate characterized by the level of summer rainfall regime
(Morello et al. 2012). During 2013, the provincial GDP reached USD 2.08 billion. The main
economic sectors are commerce, services, and
the manufacturing industry, which jointly represent 60% of the province's GDP (DEIE 2014).
During the last decade, agricultural activities
contributed USD 132 million to the regional
GDP, representing 7% of the total GDP (Medawar et al. 2011). The total irrigated land in
Mendoza reached 267,889 ha in 2017, which
represents 85% of the arable land in the province
and 25% of the national irrigated area (Calcagno
et al. 2000; FAO/PROSAP 2015).
The geographical and environmental characteristics make the province strongly dependent
on water resources for economic development.
130
F. S. Riera and B. Brümmer