Water management instruments in France: the example of the Charente region

Abstract

In France, water pricing and quota systems are the two economic instruments used to manage irrigation water. For example, one water company (Compagnie du Bas-Rhône-Languedoc) bases its tariffs on user demand, another (Compagnie d'Aménagement des Coteaux de Gascogne) combines quotas with water pricing, while a third (Société du Canal de Provence) uses long term marginal cost pricing. A French research institute (Cemagref) is attempting to define the economic instruments best suited to achieve efficient water resources management. In the case of La Charente, a decision has been take to build a new dam in order to increase the water supply (particularly during summer): the institute is seeking an incentive which will induce farmers to continue to use water sparingly, allowing for the physical and social constraints of this catchment area.