Irrigation’s Impact on Economic Growth in Alberta, Canada

Kulshreshtha S,Paterson B

doi:10.4172/2168-9768.1000156

Abstract

Irrigation development in semi-arid regions provides benefits for producers as well as many others who reside in the region. Although a common perception exists that irrigation benefits only irrigation producers, a study carried out by Paterson Earth and Water Consulting Ltd showed that irrigation positively impacts many more sectors of the Alberta economy than just irrigation producers. Compared to dry land (rain fed) agriculture, irrigation creates increased employment and economic activity through the purchase of additional farm inputs as well as processing of agricultural products. Multi-use water storage reservoirs, which support irrigation agriculture, provide societal benefits through recreation, hydropower generation, and water supply for habitat development, communities and industries. This study estimated that Alberta’s irrigation industry, which represents less than 5% of the cultivated land base, generates about $3.6 billion to the provincial gross domestic product (GDP), accounting for about 20% of the total agri-food sector GDP. It is also responsible for generating about $2.4 billion in income and creating about 56,000 jobs. Many of these jobs and incomes are generated in the rural regions of the province, and serves as an important part of the rural development initiatives in Alberta. Almost 90% of the GDP generated by the irrigation sector accrued to the region and the province, and only 10% accrued to irrigation producers.

Highlights

Economic development can be defined as those activities that lead to greater resource productivity, a wider range of choices for consumers and producers, and broader participation of members of the society in policy formulation [1]
This study provided a comprehensive assessment of the economic impacts that Alberta’s irrigation industry has on the provincial economy and quality of life for Albertans
It analyzed the economic effects of primary and value-added irrigation production, including backward and forward linkages related to that production

Summary

Introduction

Economic development can be defined as those activities that lead to greater resource productivity, a wider range of choices for consumers and producers, and broader participation of members of the society in policy formulation [1]. Economic impacts of various facets of irrigationrelated activities on the Alberta economy were estimated by developing a disaggregated model (input-output model) both in terms of commodities (goods and services) that are bought and sold by various economic agents in the province, as well as by sectors (groups of firms producing similar commodities). This model does not estimate employment in the Alberta economy in response to various sectors gearing up to produce more to meet increasing demands for various goods and services (called commodities in input-output terminology) To improve on these limitations, disaggregation of agriculture into irrigation and dry land production was undertaken. The irrigation districts provided an additional $52.27 annually for rehabilitation, operation and maintenance of district-owned infrastructure These expenditures generated a total of $102 million of GDP, including $66 million in the form of income (workers, managers, and owners of resources) (Activity 1, Table 2).

Qualitative

Findings

Summary and Conclusion