This paper evaluates the effects of water tariffs in irrigation, in terms of water consumption, land irrigated, farm income, water cost recovery and agricultural investment. The methodology is based on a multiperiod mathematical programming model, which was applied to the specific characteristics of a representative farm in southern Portugal. The main aspects analyzed were: the fix tariff per area benefited, the volumetric tariff per cubic meter of water consumed, the mix tariff and the increasing block tariff. For the simulations, it was considered a traditional productive scenario and an alternative scenario, which include value added crops.
multiperiod programming; Alentejo; water tariffs; irrigation; risk
