Economic analysis of the long-term effects of groundwater salinity: bringing the farmer’s perspectives into policy

Abstract This research estimates the economic losses at the farm level caused by groundwater over-exploitation and by seawater intrusion. The problem of coastal groundwater salinity was tackled by considering its hydrological, agronomic and economic aspects. Economic analysis for competitive use vs. regulated management regimes was carried out, considering constant and adaptive watering techniques. We concentrate on the farmers’ perspective of water as an input in agriculture, and assess discounted net present value over a period of 30 years. The ultimate goal of this research is to raise the awareness of farmers and policy makers by demonstrating the economic impacts (from the farmer’s point of view) of over-exploitation. Our findings for Apulia Region (Southern Italy) indicate that the slowness of the long-term effect of salinity and the ability of farmers to adapt irrigation profiles suggest broadening the perspective of policy intervention. For an effective management of this common resource, policy makers should follow a more comprehensive approach based on economic analysis.