An optimal price for sustainable irrigated agriculture in central-eastern Tunisia

Increasing pressures on water resources are causing many countries in Mediterranean to (re)consider various mechanisms to improve water use efficiency for agricultural like Tunisia country. The price mechanism remains the most appropriate instrument to allocate this water resource, but the search for the optimal price of water that reconciles different aspects economic and environmental is the most important issue to rise. In this paper, we will show that the search for a compromise between farm income and water consumption is possible through an optimal price applying both the entropy maximization approach and the multiobjective optimization. The results show that the use of Generalised Maximum Entropy (GME) approach is able to calibrate the model. Once the model is calibrated, a Multi-Objective Programming (MOP) was used to determine the optimal price using the compromise method. This optimal price determined has resulted to a slight economic decline in agricultural income against an immediate environmental gain of water saving. This compromise is a way to ensure the sustainability of irrigated agriculture and the preservation of water resources in Tunisia.