Economic and environmental assessment of irrigation water policies: A bioeconomic simulation study

Our results show that the region's current water policy, which frequently prevents irrigation during hot and dry periods by banning water withdrawal, causes high levels of income risk for the farmer and increases the average water demand in potato production. In contrast, the implementation of an appropriate water quota could significantly decrease water consumption in potato production while allowing the farmer's certainty equivalent to remain at the same level as it is under the current irrigation water policy.