Economic-Hydrologic Model for Water Impact Analysis in a Biofuel Production Area

Researchers from the Environment and Production Technology Division of the International Food Policy Research Institute (IFPRI) report the use of an "integrated hydrologic-economic basin model" to study the impacts of enforced water pollution standards on fertirrigation in a biofuel feedstock (sugarcane) plantation, located in a sub-basin of the Pirapama River (Brazil). The model was also used to assess "sustainable water allocation in the basin." Fertirrigation can be considered as a "joint process of irrigation and fertilization, using the irrigation water to carry and distribute the chemical or organic fertilizer over the crops". This is reportedly an important practice in the light of increased demand for sugarcane as the primary feedstock for ethanol production in Brazil. According the report, "incorporating water quality aspects into water allocation decisions leads to a substantial reduction in application of vinasse to sugarcane fields. To enforce water quality restrictions, the shadow price for maintaining water in the reservoir could be used as a pollution tax for fertirrigated areas, which are currently not subject to pollution charges. The full report can be accessed at the IFPRI website (URL above).

Related information on fertirrigation: http://issct.intnet.mu/ISBUCresprop2.HTM