At What Price Are Farmers Willing to Reduce Water Usage? Insights from the Aosta Valley

As climate change and decreasing precipitation worsen water scarcity, understanding farmers’ willingness to reduce water usage is crucial. This study examines this issue in the Aosta Valley, a region facing unique challenges due to its mountainous terrain and high water management costs. The aim is to evaluate farmers’ willingness to reduce water usage and the economic incentives needed to encourage water-saving strategies. To gather the data, 100 farmers participated in a survey that included a discrete choice experiment. The findings revealed that 75% of farmers were unwilling to reduce their water usage even with proposed monetary compensation (EUR 100–120 per hectare per year). On average, the additional compensation farmers would accept for a 10% reduction in water usage was estimated at EUR 360 per hectare per year. This high compensation demand suggests a disconnect between individual desires and economic feasibility. The key reasons for their reluctance included the belief that their current water usage is already optimized, inadequate compensation for potential economic losses and concerns about water shortage. The study highlights the need to understand the socio-cultural context when designing water management policies. Combining economic incentives with social and educational initiatives is likely more effective for promoting sustainable water practices.