Agricultural production, attitude towards risk, and the demand for irrigation water: the case of Tunisia.

摘要

This paper presents a multi-output production model that explicitly incorporates farmer risk aversion and its influence on agricultural production and land allocation decisions. The model is used to evaluate the role of irrigation water price on agricultural land allocation, output supply, and irrigation water demand in the area of Nabeul, Tunisia. Estimation results highlight the role of irrigation water policy on cropland allocation decisions, and the importance of farmer risk aversion in production decisions.