Water and Land Value in Italy

Irrigation water in Italy, as in all Mediterranean countries, is of great importance for soil productivity and, therefore, its presence has a high impact on its value. Irrigation water is not just a factor of production but its availability has generated new territorial systems, significantly different from those that would have developed in its absence; subsequently, these systems have evolved from traditional agricultural to industrial and tertiary ones. The article presents research aimed at estimating the effect of the presence of irrigation water on the value of agricultural soils. The assessment was carried out by hedonymetric approach using the quotations (Average Agricultural Values) of the soils carried out by the provincial commissions, established pursuant to Article 41 of the Presidential Decree of 08/06/2001 No. 327, to determine the compensation for expropriation for public utility. The study briefly illustrates the hedonymetric method and its use in the evaluation of water resources and presents some econometric models developed to identify the contribution of water availability to the value of the soil.