Environmental Engineering Reference
In-Depth Information
The vendors will be responsible for installing and assisting the farmers with the
operation and maintenance of the systems and will receive part of the payment after
the systems are installed and operating properly, as veri
ed by the IVA. A
nal
payment could be made after the
first crop cycle is
finished and the IVA certi
es that
the new systems continue to work properly and the farmers are satis
ed with them.
Additionally, and in parallel, new power metres will be installed at the farms (one
option is to have the same vendors manage such installation to reduce the cost to the
power utility). The power company (and the IVA) would start reading the metres and
issuing invoices clearly stating that the amount, even if for some time remains at
'
zero
'
is being subsidized and what the timeframe is to
'
normalize
'
the situation.
could be done in one step after a
long enough period of time to allow all farmers to embrace the new way of doing
things or in several steps to induce behavioural change.
The IVA will monitor and report on the reduction in irrigation water con-
sumption, the effect on the water levels in the aquifer and the evolution of power
consumption, crop yields and farmers
To this end, the electricity tariff
'
normalization
'
'
revenues.
rms the assumptions in the economic analysis,
particularly those regarding the impact of the reduced power consumption in the
delay of new power plants, the electricity tariff scheme could segregate a speci
Provided that this information con
c
charge, from whatever charges are being billed for capacity increases, to continue
funding the subsidy fund on an ongoing basis. This charge will be based on verified
results, as the farmers would have already reduced their power consumption, con-
tributing to a more ef
cient allocation of resources and a better utilization of the
installed capacity (already leading to overall reduced production costs).
The pilot scheme, if successful, could be then extended to other areas with secured
funding (not only for the subsidy but also for the data collection and monitoring in
scheme) and already capable stakeholders could provide support to the new entrants.
The subsidy scheme could be organized in a way that would prioritize those
farmers with the lowest income levels and have the better off ones pay in full for
their systems. The way to target the subsidies could vary, depending on the
information available at the time of designing the intervention. Targeting the
subsidies will promote equality while not sacri
ciency
of the scheme, as those farmers who can afford to pay for their systems will still be
motivated to install them due to the impending increase of the electricity tariffs.
cing the effectiveness and ef
4.2 Scenario 2: Broader Scope, Long-Term Focus
and Cascading Incentives
The scenario presented is necessarily theoretical and extremely simpli
ed with the
purpose of introducing the subjects for discussion. At some point, there are some
similarities with the previous scenario, but this was inevitable at this time. How-
ever, this scenario focuses on a different level of analysis and, hopefully, it will not
sound repetitive.
Search WWH ::
Custom Search