Mikiko Sugiuraasugiura@mail.ecc.u-tokyo.ac.jp

Assistant Professor

The University of Tokyo, Japan

OECD Expert Meeting on

“Sustainable Financing for Affordable Water Services from Theory to Practice”

Session 3

Agriculture water pricing and policies

Purpose of the presentation

Focusing on;

Sustainable Triangle for Irrigation water Management (STIM) in Monsoon Asia, given conditions for paddy field agriculture

water-use practice, especially during short-time drought i.e. allocation & distribution systems

Examining what Japanese practice implies in “volumetric” full-cost pricing

2007/11/15 M. Sugiura @OECD Expert Meeting

Definition of “pricing”: distinction b/w water marketing and water pricing, & putting 2 categories of volmetric and non volmetric

Given conditions

1. Climatology & hydrology

- high precipitation

- water cycle system

- seasonal / short-term

fluctuation in water

2. Topography

- gravity irrigation system

Sustainable Triangle for Irrigation water Management (STIM) in Asian Monsoon region

Quantity of Water Available

Cost of improving

facilities

Labour cost

for O&M

Water Cycle System

: substitutability

Environmental

externalities

Quantitiy of water available

Implications by STIM model Given ample water (normal situation);

Gap of elevation enables labour and energy cost to decrease

Even less improved facilities can deliver water to tail end

In a short-term draught (abnormal);

Price of irrigation water increases, which leads relative low

value of labour such as monitoring to decrease in demand

Fluctuation in water available requires flexible many

patterns by adjusting the ratio of three elements in STIM

to get water available for all, which means “efficient”

water use.

1.Area-based pricing is rational & practical

2.Actors in each case are members of LIDs

1-1. Rationality of area-based pricing

from the perspective of STIM

Given ample water (normal)； O&M cost stays constant, which results in less

saving incentive under a volumetric system

As water demand per ha on paddy field is common to members of LIDs, there is no need for metering each consumed water

In a short-time drought (abnormal);

As labour cost for O&M gets relatively low, and monitoring between LIDs’ members gets starting of which cost is less than initial investment cost for volumetric pricing

1-2. Rationality of area-based pricing

:from the perspective of “cost” concept

Since LIDs members; provide labour free as a part of O&M,

have already shared burden a part of initial investment and rehabilitation in compliance of 1949 law, full-cost pricing by volumetric method is not adequate

Farmers looked as beneficiary should not be the only defrayer because; In intermediate and mountainous area, their

agricultural activities contribute to conservation and flood control downstream

In lowland area, opened channels function also as waste water treatment system for cities, i.e. a local infrastructure

Annual meeting Cutting bush along an open channel

Cleaning activities

Conservation

& flood control

for cities downstream

Local infrastructure

as shared drainage

& treatment system

2-1. Actors in water-use management

:characteristics of LIDs (Land Improvement Districts)

LIDs : agricultural water users associations

Very unique because of its multiple aspect; Legislated by 1949 law

○ Official organization authorized to manage irrigation facilities and to collect water fee

○ Water fee as a part of O&M cost and investment cost of facilities

Bottom-up organization with a history○ Each LID is composed of old administrative units that

have dealt irrigation water as “Common” property

○ Voluntary collaboration

○ High collection rate

○ Area-based method and price itself decided by consensus of members in a LID

2-2. Actors in water-use management

:as Common Pool Resources

LIDs’ water management during the drought

Rotation systems in water scarcity

“Stand guard”

Sanction

Contributions of labour as one of important criteria

for distributing water

Cf. CPRs principles by E. Ostrom (1990)

Spirit of “GOJO” (cooperation & consession)

in allocation between sectors

Notice about rotation timeon a tertiary level

Right: “Until 13:00”Left: “From 13:00”

Monitoring activities:“Stand guard”

Quantity control by night and night “Stand guard”

Time control by Flag (showing the field with water supply)

and “Time Clock”

Conclusion

STIM under the given conditions

(climatology, hydrology and topology)

Practical area-based pricing

Flexible water-use practice managed by

LIDs as CPRs to address water supply

Preferred the “cost” concept from

practical approach, not monolithic “full

cost”