Abstract
Groundwater resources are the main source of water supply to the date palm orchards in Saravan County, Iran. The demand function is estimated using the Translog cost function and cost share equations of inputs. Results show that the real price of water is much more than the price paid by orchard owners. The substitution elasticity of water for the date crop shows its strong substitution with other inputs, but its price elasticity with other inputs is weak. In addition, the price elasticity is expectedly negative for water, but it is smaller than one and the demand (– 0.03) is inelastic.
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