Abstract

In the developing world’s irrigated areas, water management and planning is often motivated by the need for lasting food security. Two important policy measures to address this need are improving the flexibility of water appropriation rules and developing irrigation storage infrastructure. Little research to date has investigated the performance of these two policy measures in a single analysis while maintaining a basin wide water balance. This paper examines impacts of storage capacity and water appropriation rules on total economic welfare in irrigated agriculture, while maintaining a water balance. The application is to a river basin in northern Afghanistan. A constrained optimization framework is developed to examine economic consequences on food security and farm income resulting from each policy measure. Results show that significant improvements in both policy aims can be achieved through expanding existing storage capacity to capture up to 150 percent of long-term average annual water supplies when added capacity is combined with either a proportional sharing of water shortages or unrestricted water trading. An important contribution of the paper is to show how the benefits of storage and a changed water appropriation system operate under a variable climate. Results show that the hardship of droughts can be substantially lessened, with the largest rewards taking place in the most difficult periods. Findings provide a comprehensive framework for addressing future water scarcity, rural livelihoods, and food security in the developing world’s irrigated regions.

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