Assessment of water resource allocation policies based on the principle of comparative advantage and a policy analysis matrix: A case study of Hamedan-Bahar Plain

Abstract

Comparative advantages of agricultural products were evaluated using the policy analysis matrix (PAM), to determine the combination of products according to market and shadow prices. Based on these evaluations, maximum amount for import virtual water was identified. Results showed that optimum cropping pattern in term of maximizing social benefits not only had the highest amount of benefits - 29160 USD but it also required much less water amount consumption in comparison with the two other cropping patterns. Key words: Virtual water, policy analysis matrix (PAM), comparative advantage, social benefit, gross margin.