Application of Data Envelopment Analysis to Evaluate Investments in the Modernization of Collective Management Irrigation Systems in Valencia (Spain)

Abstract

Climate change and increased competition for water resources are generating growing concern about how to improve water-use efficiency in agriculture. In turn, this has prompted substantial investments in the installation of water-saving technologies in irrigation systems. The first aim of this research is to use data envelopment analysis to quantify, in terms of gross water savings (GWS), the local-scale efficiency of the irrigation policies adopted in an area of Spain suffering from a structural water deficit. Second, the cross-efficiency method is used to produce a ranking of the irrigation organizations analysed, in order to identify patterns of water-use efficiency performance that can guide future lines of investment. The results reveal that water-use efficiency prior to modernization is a key determinant of the efficiency achieved in terms of GWS at local scale. However, the investments targeted at irrigation modernization often have objectives other than water savings. These and other aspects should be taken into account when allocating public funds to irrigation modernization.