ABSTRACT
In the Mediterranean region, as in many others, irrigated agriculture is important in terms of land use, value of production and employment. Growing population, higher living standard and environmental concern rise strong pressures on water, perceived more scarce both in qualitative and quantitative terms. A severe reform in water allocation mechanism is urgently requested at international forum. Many experts suggest to reduce water use in agriculture from 60-80% of current total consumption via economic instruments. In this direction moves also the EU Water Framework Directive 60/2000 (WFD) defining criteria for water management, regulation and pricing. Economic instruments are in fact recommended to put into action the cost recovery and polluter pays principles adopted by the WFD: water price (WP) should provide incentives to reduce water use and pollution. The WFD implementation at regional and catchments level and the definition of river basin plans require long term forecasts of supply and demand for water.
