SPADIS - Smart Prices and Drought Insurance Schemes in Mediterranean Countries (AG014)

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SPADIS - Smart Prices and Drought Insurance Schemes in Mediterranean Countries (AG014)

SPADIS, standing for "Smart Pricing and Drought Insurance Schemes in Mediterranean Countries", focuses on the design and implementation of economic instruments with the best potential to induce individual decisions regarding water use in order to contribute to the collective goals of reducing vulnerability to water scarcity and increasing resilience to droughts risk. As an Action Group, it contributes to two priority areas of the Strategic Implementation Plan of the EIP-Water: flood and drought risk management, on one side; water governance, on the other.

WHAT

SPADIS will develop the following innovative economic instruments to manage drought risk:

  • A smart-pricing scheme for urban water in order to finance increased water security, enhancing the reliability of sufficient water supply during drought periods.
  • An innovative drought insurance system for irrigated agriculture to stabilize agricultural income in order to increase the resilience of rural livelihoods and to reduce current incentives to use the already over-exploited groundwater sources as buffer stocks in dry periods.

HOW

The design of these two economic instruments will be based upon an innovative Decision Support System (DSS) including three basic components:

  • An information system able to provide the data required on drivers, pressures, status, and responses with regards to water use in Mediterranean countries.
  • A water management model showing the effects of different water use scenarios (both for irrigation and household consumption) over the status of the affected water bodies.
  • A risk assessment model providing a comprehensive analysis of the probability of different levels of water supply as well as the outcomes of any likely drought scenario over yields, revenue and net margins in irrigated agriculture, and about water supply reliability and potential restrictions in urban supply.

WHO

SPADIS’ initial consortium gathers a wide variety of partners who operate throughout the whole innovation cycle. The core group of partners reflects the balance required in meaningful innovation: end-users, practitioners, other stakeholders, research and academic bodies (with interdisciplinary expertise), a technology platform, and the competent public authority.

During the first two meetings of SPADIS new partners were accepted, strengthening the representativeness of water users’ associations in Spain, the innovation cycle in Portugal, and the group expertise on water economic analysis, plus widening its geographical coverage. Yet, the group might be further enlarged as part of the next steps of SPADIS’ activity, following three lines of potential enlargement:

  1. Water economics expertise (including EPIs and hydro-economic modelling)
  2. Wider geographical coverage (special focus on the Mediterranean region)
  3. Water scarcity and drought risk (on technical or water policy grounds) 

This implies that SPADIS is expected to grow, following an internationalization strategy, through inviting (or accepting expressions of interests, blossoming these days) of new partners from northern Mediterranean countries (such as France, Italy, Greece, etc.), hydro-economic modelling expert groups, and EU partners beyond the Mediterranean either working on innovative solutions to tackle water scarcity (i.e. from the UK) or with high-level expertise on EU Freshwater Policy. In the longer term, once consolidated, SPADIS may explore links with relevant partners in southern Mediterranean countries (Northern Africa), Latin America, and other countries with severe water scarcity situations: Australia, Israel, western States of the USA, etc.

Organisations

  • Directorate of Water Planning of the Spanish Ministry of Agriculture - Food, and the Environment (MAGRAMA)
  • Instituto Madrileño de Estudios Avanzados (IMDEA water)
  • National Federation of Irrigation Communities (FENACORE)
  • Consortium of insurance firms of the agrarian sector (AGROSEGURO S.A.)
  • VALORIZA Agua
  • Aguas de Valencia (AVSA
  • Spanish-Portuguese Association of Environmental and Natural Resource Economics (AERNA)
  • Spanish Water Technology Platform (PTEA)
  • Universitat Politècnica de València (IIAMA-UPVLC
  • Universidad de Alcalá (UAH
  • Instituto Superior Tecnico de Lisboa (IST-UL
  • Spanish Association of Desalination and Water Reuse (AEDyR
  • Spanish Association of Urban Water and Sanitation Operators (AEAS
  • Universidad de Córdoba (UCO
  • Universidad Pablo de Olavide (UPO)
  • Ecologic Institute (ECOLOGIC)  
  • Environment research and consultancy (ACTeon
  • Solutions for the environment and Engineering (SEVEN
  • Instituto Universitário de Lisboa (ISCTE-IUL)
  • Portuguese Water Supply and Wastewater Association (APDA)
  • Bureau de Recherches Géologiques et Minierès (BRGM)
  • National Federation for Irrigators in Portugal (FENAREG)
  • Águas do Ribatejo (AG)

 

A senior specialist in cleantech finance and...

Industrial Engineer from Politechnical University...

Economist (University of Leeds, UK). He is a...

Family name: Cuevas García First names: Juan...

Estefanía holds a Masters of Arts degree in...

I am a Civil Engineer by training, an Engineer of...

General Administrator of the EIP System, which...

Professor of Economic at the Universidad de...

Associate Prof. at the Dpt. of Water Resources...

Pages

Public Documents: 

28th October 2014

A forthcoming research paper on Water Policy authored by Dionisio Pérez and Carlos M. Gómez, SPADIS AG leader, explores the potential for a new drought insurance in southern Spain where current water gaps are largely covered from...

28th October 2014

The Segura River Basin in the south east of Spain suffers from a structural condition of water scarcity and drought occurrence. A recent strategy, promoted by SPADIS as an EIP-Water Action Group, is introducing a set of Economic Policy Instruments aimed at addressing structural changes of the...

28th October 2014

With the active involvement of SPADIS members from ACTeon (France), Ecologic (Germany), IMDEA (Spain) and the Uinversidad de Alcalá, among others, this guide compiles the best recommendations from the EPI-Water project (not EIP-Water this time!) for the design and implementation of enabling...

19th March 2014

In commemoration of the World Water Day 2014 taking place in Tokyo (Japan), on March 21st, the UN will present the World Water Development Report (...

Profile

SPADIS - Smart Prices and Drought Insurance Schemes in Mediterranean Countries (AG014)

SPADIS, standing for "Smart Pricing and Drought Insurance Schemes in Mediterranean Countries", focuses on the design and implementation of economic instruments with the best potential to induce individual decisions regarding water use in order to contribute to the collective goals of reducing vulnerability to water scarcity and increasing resilience to droughts risk. As an Action Group, it contributes to two priority areas of the Strategic Implementation Plan of the EIP-Water: flood and drought risk management, on one side; water governance, on the other.

WHAT

SPADIS will develop the following innovative economic instruments to manage drought risk:

  • A smart-pricing scheme for urban water in order to finance increased water security, enhancing the reliability of sufficient water supply during drought periods.
  • An innovative drought insurance system for irrigated agriculture to stabilize agricultural income in order to increase the resilience of rural livelihoods and to reduce current incentives to use the already over-exploited groundwater sources as buffer stocks in dry periods.

HOW

The design of these two economic instruments will be based upon an innovative Decision Support System (DSS) including three basic components:

  • An information system able to provide the data required on drivers, pressures, status, and responses with regards to water use in Mediterranean countries.
  • A water management model showing the effects of different water use scenarios (both for irrigation and household consumption) over the status of the affected water bodies.
  • A risk assessment model providing a comprehensive analysis of the probability of different levels of water supply as well as the outcomes of any likely drought scenario over yields, revenue and net margins in irrigated agriculture, and about water supply reliability and potential restrictions in urban supply.

WHO

SPADIS’ initial consortium gathers a wide variety of partners who operate throughout the whole innovation cycle. The core group of partners reflects the balance required in meaningful innovation: end-users, practitioners, other stakeholders, research and academic bodies (with interdisciplinary expertise), a technology platform, and the competent public authority.

During the first two meetings of SPADIS new partners were accepted, strengthening the representativeness of water users’ associations in Spain, the innovation cycle in Portugal, and the group expertise on water economic analysis, plus widening its geographical coverage. Yet, the group might be further enlarged as part of the next steps of SPADIS’ activity, following three lines of potential enlargement:

  1. Water economics expertise (including EPIs and hydro-economic modelling)
  2. Wider geographical coverage (special focus on the Mediterranean region)
  3. Water scarcity and drought risk (on technical or water policy grounds) 

This implies that SPADIS is expected to grow, following an internationalization strategy, through inviting (or accepting expressions of interests, blossoming these days) of new partners from northern Mediterranean countries (such as France, Italy, Greece, etc.), hydro-economic modelling expert groups, and EU partners beyond the Mediterranean either working on innovative solutions to tackle water scarcity (i.e. from the UK) or with high-level expertise on EU Freshwater Policy. In the longer term, once consolidated, SPADIS may explore links with relevant partners in southern Mediterranean countries (Northern Africa), Latin America, and other countries with severe water scarcity situations: Australia, Israel, western States of the USA, etc.

Organisations

  • Directorate of Water Planning of the Spanish Ministry of Agriculture - Food, and the Environment (MAGRAMA)
  • Instituto Madrileño de Estudios Avanzados (IMDEA water)
  • National Federation of Irrigation Communities (FENACORE)
  • Consortium of insurance firms of the agrarian sector (AGROSEGURO S.A.)
  • VALORIZA Agua
  • Aguas de Valencia (AVSA
  • Spanish-Portuguese Association of Environmental and Natural Resource Economics (AERNA)
  • Spanish Water Technology Platform (PTEA)
  • Universitat Politècnica de València (IIAMA-UPVLC
  • Universidad de Alcalá (UAH
  • Instituto Superior Tecnico de Lisboa (IST-UL
  • Spanish Association of Desalination and Water Reuse (AEDyR
  • Spanish Association of Urban Water and Sanitation Operators (AEAS
  • Universidad de Córdoba (UCO
  • Universidad Pablo de Olavide (UPO)
  • Ecologic Institute (ECOLOGIC)  
  • Environment research and consultancy (ACTeon
  • Solutions for the environment and Engineering (SEVEN
  • Instituto Universitário de Lisboa (ISCTE-IUL)
  • Portuguese Water Supply and Wastewater Association (APDA)
  • Bureau de Recherches Géologiques et Minierès (BRGM)
  • National Federation for Irrigators in Portugal (FENAREG)
  • Águas do Ribatejo (AG)

 

Members

A senior specialist in cleantech finance and...

Industrial Engineer from Politechnical University...

Economist (University of Leeds, UK). He is a...

Family name: Cuevas García First names: Juan...

Estefanía holds a Masters of Arts degree in...

I am a Civil Engineer by training, an Engineer of...

General Administrator of the EIP System, which...

Professor of Economic at the Universidad de...

Associate Prof. at the Dpt. of Water Resources...

Pages

Documents

Public Documents: 

News

28th October 2014

A forthcoming research paper on Water Policy authored by Dionisio Pérez and Carlos M. Gómez, SPADIS AG leader, explores the potential for a new drought insurance in southern Spain where current water gaps are largely covered from...

28th October 2014

The Segura River Basin in the south east of Spain suffers from a structural condition of water scarcity and drought occurrence. A recent strategy, promoted by SPADIS as an EIP-Water Action Group, is introducing a set of Economic Policy Instruments aimed at addressing structural changes of the...

28th October 2014

With the active involvement of SPADIS members from ACTeon (France), Ecologic (Germany), IMDEA (Spain) and the Uinversidad de Alcalá, among others, this guide compiles the best recommendations from the EPI-Water project (not EIP-Water this time!) for the design and implementation of enabling...

19th March 2014

In commemoration of the World Water Day 2014 taking place in Tokyo (Japan), on March 21st, the UN will present the World Water Development Report (...