The effect of water pricing on water consumption of Iranian crops

Document Type : Research Paper

Authors

1 Asistant Prof, Faculty of Agricultural Engineering, Agricultural Sciences and Natural Resources University Sari.

2 PhD Student of Agricultural Economics, Agricultural Sciences and Natural Resources University Sari

3 Ph.D. Agricultural Economics, Agricultural Sciences and Natural Resources University Sari

Abstract

Optimal management and proper use of available water resources is an inevitable necessity. Therefore, this study was conducted to investigate the effect of irrigation water prices on its demand in the agricultural sub-sector of the country. For this purpose, to determine the price of water shade and its demand function in a different way from other studies and using the obtained coefficients in calculating the non-parametric random inclusive model, the data were determined and the price of irrigation water shade using coefficients obtained. It came from this model. The required data for the research were also collected from the website of the Ministry of Jihad Agriculture during the annual period of 2005-2016. The results showed that the average efficiency of irrigation water in the agricultural sub-sector during the study period was equal to 83.02%. Also, the results of estimating the irrigation water demand function showed that the irrigation water demand in the agricultural sub-sector is inelastic and 0.16 and the elasticity of water demand to technical efficiency is equal to 8.37. Based on the obtained demand function, the variables of water price, price of other production inputs and water efficiency have a significant effect on irrigation water demand in Iran's agricultural sector. Among the studied variables, technical efficiency, with the largest coefficient, is considered as the most effective factor in irrigation water demand. This result shows the need to pay more attention to the issue of water efficiency and efforts to improve and improve the efficiency of irrigation water in the agricultural sector. Also, according to the results, increasing the price of irrigation water in agriculture sub-sector will not have much effect on reducing demand and water consumption in this sub-sector and reducing irrigation water consumption in agriculture sub-sector will be possible by improving water technical efficiency.

Keywords

References

Abdullahi, E., M., Javanshah, A. 2007, Economic study of the possibility of using new methods of water supply and demand in the agricultural sector, a case study of pistachio farmers in Rafsanjan. Research and construction in agriculture and horticulture, 20 (75): 113-126. (In farsi)
Akbari, Alasht H., Hoshiaripour, F., Qalkhani, H. 2015. Water market (principles, goals, approaches and global experiences). Water Engineering Conference and Exhibition. (in farsi)
Amirnejad, H., Fazelian, S., Hosseini, Yekani A. 2017. Determining the economic value of water in the production of high quality and high-yield rice (case study of Behshahr plain, Mazandaran province), Journal of Agricultural Economics Research, 10 (3): 241-26.(in farsi)
Anouya, Tekiyeh L., Chizari, p., Peykani, Gh. 2003. Investigating the comparative advantage of iranian apple tree from the perspective of production and export. Proceedings of the 4th Iranian Agricultural Economics Conference. Tehran-Karaj. (in farsi)
Asadi, M., Khalilian, p., Mousavi, H. 2019. Estimation of economic value of water in rapeseed and wheat production, Journal of Water Resources Engineering, Year 12. (in farsi)
Ataiee, M., Moghaddasi, R., Tahamipour, M. 2015. Determining the appropriate method of water pricing in the agricultural sector of Fars province, Agricultural Economics and Development, 24 (96): 223-199. (in farsi)
Babaei, M., Mardani, M., and Salarpour, M. 2014. Calculating water efficiency in major agricultural products of zabol city: data envelopment analysis approach, Journal of Water Research in Agriculture, 28 (3): 541-549. (in farsi)
Babaei, M., Paknejad, H., Mardani, M., Salarpour, M. 2012. Investigating the efficiency of crops in jahrom city using envelopment analysis of periodic data, Journal of Operations Research and its applications, 9 (4): 53-43.(in farsi)
Balali, H., Khalilian, p., and Ahmadian M. 2010. Investigating the role of water pricing in the agricultural sector on the balance of groundwater resources, Journal of Agricultural Economics and Development (Agricultural Science and Industry), 24 (2): 185-194.(in farsi)
Dearden, P. 1998. Reflections on seminar: DFID Seminar on demand assessment in the water and sanitation sector-facilitated by professor Dale Whittington and Jennifer Davis, DFID, London, PP:55-67.
Esfanjari Kenari, R. 2016. Using Stochastic Nonparametric Envelopment of Data (StoNED) to calculate Energy Inputs Efficiency of Wheat Production in Mazandaran province, Journal of Operations Research in its Applications. 13, 4(51): 141-154. (In farsi)
Falahati, A., Soheili, K., Vahedi, M. 2012. Economic pricing of water in the agricultural sector by cryptographic method, Journal of Agricultural Economics and Development (Agricultural Sciences and Industries), 26 (2): 140-134. (in farsi)
Fengjiao, M.B., Hui Gaoa, A., E., Zhanzhong, J., Lipu H., and Jintong, L. 2016. An Economic valuation of groundwater management for agriculture in iuancheng county, north china. Agricultural water management. 163(1): 28-36.
Ganji, N., Yazdani, S., Saleh, A. 2018. Identifying factors affecting the efficiency of water input in wheat production in Alborz province (data envelopment analysis approach), Iranian Journal of Agricultural Economics and Development Research, 49 (1): 13-22. (in farsi)
Gómez-Limón, J.A., L. Riesgo (2004), Irrigation water pricing: differential impacts on irrigated farms, Agric. Econ., 31: 47–66.
Gómez-Limón, J.A., Y. Martı´nez (2005), Multi-criteria modeling of irrigation water market at basin level: A Spanish: case study, Eur. J. Oper. Res, 1-24.
Heydari, N., 2011. Determining and evaluating the water use efficiency index of crops under the management of farmers in the country, Water Management and Irrigation, 1 (2): 43-57.(in farsi)
Iran Chamber of Commerce, Industries, Mines and Agriculture, 2019. (in farsi)
Islami, A., Mehrabi, A., Zehtabian, Gh., Ghorbani, m. 2013. Estimation of agricultural water demand function of pomegranate orchards in Charkhab village of Yazd. Journal of Rangeland and Watershed Management, 66 (1): 17-26. (In farsi)
Kuosmanen, T., Kortelainen, M. 2012. Stochastic non-smooth envelopment of data: semiparametric frontier estimation subject to shape constraints. Journal of Production Analysis, 38, 11 –28.
Lan, M., Chenchenng,W., Hao,W., Shungyuan,Li. 2019. Assessing the impact of water price reform on farmers willingness to pay for agricultural water in northwest china. Journal of cleaner production, 1072-1081.
Mekaroonreung, M., Johnson, A.L., 2012. Estimating the shadow prices of SO2 and NOX for U.S. coal power plants: a convex nonparametric least squares approach. Energy Econ, 34, 723–732.
Mohamadjani, E., Yazdanian, N., 2015. Analysis of the water crisis in the country and its management requirements. Journal of Economic research process, 21,117-144. (in farsi)
Mousavi, N. 2015. Investigating the effect of increasing the price of irrigation water on the demand of agricultural inputs in Jam city, Journal of Water Resources Engineering, 8: 22-1. (In farsi)
Parkashan, CH., Stijn, S., Guido Van,H. 2013. Estimating the impact of water pricing on water efficiency in semi-arid cropping system: an application of probabilistically constrained nonparametric efficiency analysis, Water Resources Management 27,55-73.
Quds, M. Ebrahimi, K. 2019.Agricultural water pricing an approach to water resources economics management, international conference on management, Accounting, Economics and Banking. (in farsi)
Schuck, E.C., and Green, G.P. 2002, 'Supply-based water pricing in a conjunctive use system: Implications for resource and energy use', Resource and Energy Economics, 24 (3(374: 175-192.
Shajari, Sh, Barikani, E., Amjadi, A. 2009. Managing water demand using water pricing policy in Jahrom groves Case study of royal dates. Journal of Agricultural Economics and Development, 17 (65): 55-72. (In farsi)
 
Shen, X., Lin, B. 2017. The shadow prices and demand elasticities of agricultural water in China: A StoNED-based analysis, Resources, Conservation & Recycling. 127: 21–28.
Sirajuddin, A., Fattahi, A., Second List, M., and Neshat, A. 2016. Dynamic analysis of technical efficiency of water consumption in sugarcane crop (data envelopment analysis approach), Agricultural Economics, 10 (4): 188-177. (in farsi)
Vaziri, A., Vakilpour, M.H., Mortazavi, S.A. 2016. Investigating the effect of economic pricing of irrigation water on cultivation pattern in Dehgolan plain. Agricultural Economics Research, 8 (3): 81-100. (In farsi)
Ziolkowska, j. 2015. Shadow price of water for irrigation-A case of the High Plains. Recycling, 20-31.

Files

Share

How to cite

Statistics