Economic Value Of Irrigation Water Research Articles

Estimation of the economic value of irrigation water in canal and tube well command areas

AbstractIn recent years, inequality in the distribution of tube wells and non-availability or non-accessibility of canal water during the rabi season leads to a lack of economic value fixation of irrigation water to crops. The main objective of this paper is to calculate the economic value of irrigation water for major crops in the Paliganj distributary of the Sone canal system and the Nalanda corridor site of tube well irrigation, Bihar, India using the Residual Value Method (RVM). Results revealed that the average irrigation water economic value on the basis of applied irrigation through the canal and tube well in the Paliganj distributary for rice, kharif maize, wheat, lentil, khesari, gram, rabi maize, potato, onion, and green gram crops was assessed as 3.73, 22.60, 11.67, 21.50, 27.42, 23.27, 14.75, 98.06, 84.92, and 27.17 Rs./m3, respectively. In the Nalanda corridor, the average irrigation water economic value of rice, kharif maize, wheat, lentil, gram, pea, mustard, potato, rabi maize, and green gram crops was assessed as 12.54, 24.61, 18.71, 44.15, 39.53, 37.85, 32.35, 96.93, 15.44, and 30.25 Rs./m3, respectively.

Prioritization of areas suitable for rice cultivation based on the economic value of irrigation water

AbstractThis study assessed the economic value of rice irrigation water in four key rice‐producing provinces of Iran: Guilan, Mazandaran, Khuzestan and Fars. In this respect, the production function approach and cross‐section data of 2014–2015, collected from paddy farmers in each province, were applied. In this research, two approaches were used: (i) determining the economic value of irrigation water after omitting outliers and extreme observations (first approach); (ii) determining the economic value of rice irrigation water using relevant observations that match the yield–input consumption trend equation (second approach). The results of the first and second approaches showed that Guilan province was ranked first in terms of economic value of rice irrigation water with average economic values of US$0.47 and 0.53, Mazandaran ranked second with average economic values of US$0.35 and 0.32, Khuzestan province ranked third with US$0.17 and 0.16 and Fars province ranked fourth with US$0.09 and 0.09, respectively. Therefore, it is recommended that farmers cultivate rice in the two first provinces that enjoy enough water and, also, in the two last provinces limit the scope of their cultivation because of water scarcity. This methodology can be employed in other regions to prioritize areas suitable for rice cultivation.

Economic value of irrigation water for major crops in the Ardabil plain, Iran*

AbstractThe agricultural sector is facing an increasing demand for water in Iran due to the large disparity between the cost of water supply and the price paid by farmers. Therefore, the real price of water neds to be calculated. To this end, in this study the economic value of water was calculated in the case of wheat, potatoes, alfalfa, barley and canola in Ardabil city using cross‐sectional data collection for the year 2018, with 1087 questionnaires completed by farmers in the area. Data were analysed using Excel, SPSS and EViews software products. The economic value of irrigation water after analysing the results for wheat, potato, alfalfa, barley and canola crops was 0.026, 0.092, 0.022, 0.0225 and 0.0474 US$/m3, respectively. Since these calculated economic values are quite high for different crops, production of the crops in question is economically viable and the water consumed economically justified. The price of water supply in the Ardabil plain varies between 0.00877 and 0.0175 US$/m3, which is significantly different from the real price. Given the price difference between the cost of water supply and the price paid by farmers, incentive schemes can be used so that any farmer who consumes less water will benefit from a discount in the calculation of water prices, resulting in mitigation of water volume consumption.

ECONOMIC VALUATION OF SURFACE IRRIGATION WATER: SHIRE VALLEY, SOUTHERN MALAWI

Economic valuation of surface irrigation water and the factors that determine willingness to pay for such resource for sustainable purposes is not clearly defined in Malawi. This paper evaluated economic value of surface water used in irrigation and identified factors influencing farmers' decision to participate in water markets for rice and sugarcane production in Upper Shire Valley of Southern Malawi. A cross-sectional data from 310 households involved in irrigation activities was used. General Algebraic Modelling System (GAMS) was employed to determine the economic value of surface water. Craggit Double Hurdle Model and Range-WTP procedure was employed to determine factors influencing farmers' decision to participate and pay for surface water solicit the social value of the surface water. The results revealed an economic value of 480.77 Malawi Kwacha1 (MK)/m3 for surface water in the valley, but specifically pointed out that surface water value for rice and sugarcane production was MK 512.96/m3 and MK 448.58/m3 respectively. Households irrigating rice and sugarcane revealed a willingness to pay for water at MK 1.67/m3 and MK 2.87/m3 respectively. Farming as a livelihood, plot status, crop type and market prices are reported to be influencing household participation in the water market. The study recommends that: (i) Farmers must always be informed of the economic value of irrigation water and be prepared to pay for it; and (ii) The allocated land should have a well-defined period of access and crop types to be grown in the valley should be of high economic value.

Assessment of the economic value of irrigation water considering achieve main crops self-sufficiency: Case study Sharkia Governorate, Egypt

Abstract The water shortage issue may put a spotlight over most of the Middle East region and push many nations to re-planning the water resources in various respects. Providing data on water’s economic value assists policymakers make informed decisions regarding water distribution. Additionally, addressing the increasing demand for all uses and building the sustainable future of agricultural and water policies. The purpose of this article is to explore and evaluate the economic value of irrigation water in Sharkia Governorate, regarded one of Egypt’s largest provinces. It also examines how to maximize the economic value of irrigation water, taking into account the self-sufficiency of main crops. Furthermore, consideration has been given to the political demands for the allocation, management and control of water resources. The simulation software Operational, Planning and Distribution Model (OPDM) was used to simulate through the studied province the accessible water distribution and crop yield. Moreover, it is used to judge the impact of irrigation water utilization and to check gross income. Furthermore, from a technical and economic point of perspective, the distinct suggestions were contrasted. The research evaluates the present crop pattern for wheat and cotton attaining a peak economic value of 1.23 EGP/m3 and 0.98 EGP/m3 of irrigation water for wheat and cotton respectively. Moreover, it reaches 0.41 EGP/m3 for rice which considered one of the highest plants in water consumption. Finally, these findings may highlight some strategic crops future development.

The Economic Value of Irrigation Water in Wadi Zabid, Tihama Plain, Yemen

This study used crop budgets to assess the impact of declining groundwater levels on the economic value of irrigation water in the Wadi Zabid region of Yemen. The study found that returns to land and water were highly sensitive to changes in groundwater depths over time and the free availability of spate water for irrigation. Crops differed in the amounts of irrigation water applied and in their returns to land and water. Banana had the highest irrigation requirement, but also delivered the highest return to land. Banana’s return to water was greater than that of date palm and feed sorghum, but lower than that of mango and food sorghum.

Water requirements for irrigation with saline groundwater of three date-palm cultivars with different salt-tolerances in the hyper-arid United Arab Emirates

Direct measurement of sap flow enabled determination of the seasonal pattern of water use, ETc, of three date (Phoenix dactylifera L.) varieties irrigated with groundwater at different salinities: S1 at 5 dS m−1 and S3 at 15 dS m−1. The ETc at the higher salinity was 43–46% lower across all varieties. The crop factor, Kc, was computed from ETc / ETo, where ETo is the reference evapotranspiration. By proximal sensing using a light stick, we measured the fraction of light intercepted, LI, by the trees’ canopies. For all varieties and salinities, we found the ratio Kc LI−1 to be about 0.95, which enables proximal sensing to be used to predict ETc for all varieties and across salinities. These predictions can then be used to schedule irrigation the recommended rate of 1.5 ETc, which accounts for a 25% factor-of-safety and a 25% salt leaching fraction. For S1, the salt-tolerant ‘Lulu’ used 50 kL tree−1 y−1, the moderately tolerant ‘Khalas’ consumed 43.1 kL tree−1 y−1, and the salt-intolerant ‘Shahlah’ transpired 57.3 kL tree−1 y−1. Whereas the drop in ETc across all varieties was similar between S1 and S3, there were large differences in the drop in date production. Date production between S1 and S3 dropped 29% for ‘Lulu’, 43% for ‘Khalas’, and 52% for ‘Shahlah’. Analysis of the consumed water productivity, CWP (kg-dates kL−1) provides insight into the impacts of salinity on date yield. For the tolerant ‘Lulu’ the CWP for S3 was higher (2.21 kg-dates kL−1) than that for S1 (1.78 kg-dates kL−1), although production was higher with S1 (89.1 kg tree−1) than S3 (62.9 kg tree−1). The CWP for ‘Khalas’ was the same for both treatments (≈ 1 kg-dates kL−1). For the salt intolerant ‘Shahlah’, CWP dropped between S1 (1.5 kg-dates kL−1) and S3 (1.34 kg-dates kL−1). Based on the price of dates, the CWP can also be used to assess the economic value of irrigation water by variety and salinity.

Research on an Improved Economic Value Estimation Model for Crop Irrigation Water in Arid Areas: From the Perspective of Water-Crop Sustainable Development

This paper aimed to construct an improved economic value estimation model (EVIW model) to assess the economic value of water, which plays an important role in the sustainable development of crop planting and irrigation design, especially in arid areas lacking water resources. Firstly, the current EVIW model was based upon improvements and adjustments to the cost-benefit analysis models of previous researchers. Then, to elaborate the whole process of estimation, an empirical study based on the data of Yanqi Basin was conducted. Subsequently, in order to verify the accuracy of the EVIW model, the economic value of irrigation water in this study area was estimated for a second time using the benefit sharing coefficient method. It was concluded that the estimated results of the current EVIW model are in good agreement with those of the traditional benefit sharing coefficient model. The estimation results of the economic value of irrigation water were found to be highly acceptable in terms of accuracy and scientific rigor.

Estimation of the economic loss due to irrigation water use inefficiency in Tunisia.

The main objective of this study is to estimate the total economic loss due to inefficient use of irrigation water in Tunisia. Several approaches have been used for this purpose. The optimal level of water application for different crops is calculated using the actual crop evapotranspiration which is based on FAO-56 method. The residual imputation and yield comparison methods have been used to estimate the economic value of irrigation water for different irrigated crops in different bioclimatic areas. For the empirical analysis, primary data were obtained from a series of surveys that covered 78% of the total irrigated areas and were collected within the framework of the "Virtual Water and Food Security in Tunisia project" (2013-2015). Secondary data about land distribution of crops in Tunisia were taken from the Ministry of Agriculture (2016). Around 724 farms were randomly sampled considering their bioclimatic area, farm type, and production system. The survey included the main 20 crops produced in Tunisia. Results show that most of farmers are either under or over utilizing irrigation water. The value of total direct economic losses, at the country level, of both types of water inefficiencies, was estimated to around 470 million Tunisian Dinars. Therefore, an improvement of water use efficiency at field level through dissemination of information/knowledge on irrigation scheduling and crop water requirements by extension services to farmers is needed to reduce this huge economic loss, reach higher sustainability in water use and improve food security.

Estimating economic value of irrigation water and analysis of influencing factors: A case study based on residual value method and farmers' datain Guanzhong area of Shaanxi

Estimating economic value of irrigation water and analysis of influencing factors: A case study based on residual value method and farmers' datain Guanzhong area of Shaanxi

Explaining variation in the economic value of irrigation water using psychological capital: a case study from Ndumo B and Makhathini, KwaZulu-Natal, South Africa

This study investigates the economic value of irrigation water using data collected from 200 smallholder producers in Makhathini and Ndumo areas, KwaZulu-Natal.The study accounts for psychological capital (individual mind-set and attitude affecting motivation to take initiatives) as an important aspect of farm management. This concept focuses more on the ‘soft’ aspects of farm management, which have not been adequately studied in the context of smallholder farming. A sustainable livelihoods framework is employed as a conceptual framework and the role of psychological capital is integrated to explain the variation in water values. The study employs the residual valuation method to estimate water values, principal component analysis to generate an index for psychological capital, and the general linear model to explain variation in water values. The findings suggest that variation in water values was mainly influenced by the location of the farmer, farmer type, physical capital, social capital, land size, farming experience, crop type and psychological capital. The results reinforce the importance of institutional arrangements and collective bargaining as an important element of managing a smallholder farm to increase the economic value of water. To build and develop positive psychological capital for smallholders, it is recommended that government should re-visit the usual model of ‘hand-outs’ (input, finance). It is time to re-consider direct farmer support that entails being heavily involved in their day-to-day activities (i.e., purchasing inputs and running the irrigation schemes on their behalf). Going forward, the focus should rather be on enabling them to change their behaviour to be self-reliant and own their own destiny through on-farm and off-farm economic activities. Moreover, government and other development partners have to understand the long-term behavioural impact (on farmers) of what they do, for instance, entrenching expectations.

The economic value of irrigation water in paddy farms categorized according to mechanization levels in Guilan province, Iran

The economic value of irrigation water is not considered as a highly affective criterion in water tariff system in Iran. To this end, proper measures and viable scientific and management solutions are very important for the optimal use of this input. This study aims to determine the economic value of irrigation water used in rice agriculture in Guilan province. For this purpose, production functional forms were utilized. In addition, determining the marginal product and its value led us to achieve economic value of irrigation water for farms with different mechanization levels. It is noted that the cross-section data used in this study were derived from questionnaires in the “production cost plan” of Iranian Ministry of Agriculture during 2013–2014 crop years. Generalized Leontief functional form was selected as the favorable form for the farms with high mechanization level. The economic value of irrigation water considered in these farms is 0.5108 $/m3. For the farms with low mechanization level, Translog functional form is chosen as the superior form whose final water economic value equals 0.5054 $/m3. Reviews of the statistical difference between the two groups showed significant differences between the economic values of water. Considering water scarcity in Iran and the existing difference between its tariff system and economic value, it is recommended that the present tariff system be reformed and economic value of irrigation water be considered in the corresponding tariff system.

Impact of Climate Variability Including Drought on the Residual Value of Irrigation Water Across the Murray–Darling Basin, Australia

Understanding the economic value of irrigation water is essential for supporting policies relating to the irrigation sector, irrigation water allocation decisions, water pricing and to compare the variable impacts of water reform within and across sectors of the economy. In this paper, we apply the residual method as a complement to other methods for determining the value of the water used over a wide range of irrigated crops in different seasons and regions of Australia’s Murray–Darling Basin. Using Monte Carlo simulation and probability theory, we estimated the combined impacts of biophysical and economic factors on the economic productivity of irrigation water use by individual activities. The estimated residual values vary across regions and in response to water availability as we would expect and warrant consideration of these factors in making any future water policy and investment decisions in different regions. As anticipated perennial (fruits and nuts, grapes) and high capital annual activities (cotton) represent the highest value water uses. Water trading from low to high value activities results in economic losses that are much lower than the proportional decline in water availability during periods of drought.

Economic Value of Irrigation Water of Horticultural Crop in Dry Season

Economic Value of Irrigation Water of Horticultural Crop in Dry Season

Economic valuation of irrigation water in south-eastern Mexico

Ongoing discussion on new water legislation in Mexico emphasizes the need to consider the economic dimension of water. Using the net income change method, in this article the economic value of irrigation water is estimated for banana cultivation in the state of Tabasco, which is a tropical region with high rainfall. The main results show that irrigated farms are 34–37% more profitable than rainfed ones with similar revenue levels, with corresponding water values of 1.48–1.75 USD/m3. These values are a proxy of farmers’ maximum willingness to pay, and can be used to inform tariff reform.

Integrated agriculture water management optimization model for water saving potential analysis

This paper studied on the quantification of agriculture water savings under water integrated optimal management and analyze the economic increment of agriculture water savings. First, an integrated agriculture water management optimization model composed of a planting structure optimization model and water resources allocation under conjunctive use of surface water and groundwater optimizing model is built in this paper and applied to Fendong District of Fenhe Region in Shanxi Province, China. Resilience of water utilization and saving inside agriculture have been fully developed through detailed expressions of demand process of multi crops and the interaction and transformation between surface water and groundwater. Optimal solutions of planting structure and corresponding water resources allocation scheme indicate that water demand and supply are more reasonable after assembling crop water demand to flood seasons. Water saving could be realized in the premise of maximum economic benefit after integrated optimization management. Next, active water saving and passive water saving scenario have been set to analyze the correlativity between water saving quantity and maximum economic benefit through adopting integrated agriculture water management optimization model. The results show that water saving potential and agriculture benefit demonstrate a negative correlation. The interval linear function of water saving-effect comprised of two scenarios is used to represent this negative correlation. Consequently, approximately 10% of surface water could be saved in Fenhe Region under current planting scale. Finally, an optimization model for agricultural water transfer are formulated to the further study on agriculture water savings reallocation by maximizing incremental benefit of water resources. The interval linear function of agriculture water saving-effect and water production function of the second industry and tertiary industry have been introduced to obtain agriculture water transfer trend under various circumstances. For Fenhe Region, agriculture water transferring to the second industry (533×104m3) and tertiary industry (235×104m3) could bring an incremental benefit about 8.66–8.94 billion RMB, and 90.2–93.1 RMB for 1m3 of irrigation water, which exhibits a huge potential of economic benefit of agriculture water savings. The results indicate that optimization model for agricultural water transfer is an efficient way to analyze economic value of irrigation water and provide agriculture water transfer strategies.

An economic analysis of role of technology in sustaining water resources for enhanced agricultural production

Sugar producing regions in India have more than 80 percentage groundwater irrigation through deep-well pumping. Whereas, NASA's gravity recovery and climate experiment satellites have revealed faster depletion of groundwater stocks in India. These areas are cultivating 93 percentage of sugarcane. This research is a comparative study and has attempted to estimate the economic value of irrigation water and the benefits of water and energy that can be saved through adoption of improved irrigation technologies. The economic value of each ha. cm of irrigation water for sugarcane was also worked out. Including additional area under irrigation with the water saved should be recommended only in safe and semi-critical regions to prevent 'rebound' effect.

Farmers' Willingness to Pay for Improved Irrigation Water — A Case Study of Malaprabha Irrigation Project in Karnataka, India

In principle, the approach toward irrigation management in India has gradually shifted from a government-dominated, supply-side paradigm toward a user-preferred, demand-side paradigm. Yet, decisions regarding water allocation and irrigation charges do not adequately incorporate farmers' preferences and their willingness-to-pay (WTP) for improved irrigation. Since public investment on irrigation projects is sizeable and the opportunity cost of irrigation water is increasing, there exists a need to estimate the economic value of irrigation water in order to utilize it in an efficient manner. This paper presents results of a contingent valuation (CV) study conducted in a semi-arid region, namely, the Malaprabha Irrigation Project in Karnataka, India, which elicited farmers' preferences and their WTP value for improved irrigation. The results suggest that farmers predict a significant increase in agricultural benefits due to additional irrigation and they are willing to pay significantly higher than what they are currently paying to secure these benefits. It implies that improved irrigation increases not only the farmers' benefits but could potentially increase the government's revenue, resulting in a win–win outcome.

Irrigation Water Pricing in Iran: The Gap between Theory and Practice

Pricing policies play an important role in water demand management and its optimal allocation. Determining proper water price leads to optimal allocation of water especially in agricultural consumptions. Applying new subsidy targeting law in Iran which insists on pricing water based on its supply cost, will effects considerably on water resource management in agriculture sector. So, in this study, different Irrigation water pricing methods is investigated and proper irrigation water price is determined using survey data for 2010-2011 farming year in Golestan Province of Iran. At the first step using econometric approach, economic value of irrigation water in different agriculture crops is determined that shows demand side price for water. Then, supply cost of surface and ground water is calculated using accounting approach which shows supply side price for irrigation water. Finally, economic value and supply cost of irrigation water compared and different water pricing methods is evaluated. Results indicated that, weighted average of economic value and supply costs of irrigation water in Golestan province were 1795 and 1399 IRR per cubic meter, respectively. So, improvement of water demand and supply management could be achieved using price policies.

Maximizing the economic value of irrigation water and achieving self sufficiency of main crops

Water is a limited resource that needs sustainable management, which aims to develop and protect it. Without a proper management, water will become a constraining factor in the socioeconomic development of Egypt.Giving information on the economic value of water enable decision makers to take informed choices on water allocation to face the growing demands for all uses and drawing its sustainable future in agricultural and water policies. The current paper aims to assist decision makers in developing new cropping patterns considering the supply and demand aspects based on the efficient utilization of the water resources. It has proposed a cropping pattern which can increase the economic value of irrigation water from 0.88 LE/CM to 0.92 LE/CM. It can also decrease the gap between the national production and the imports, and increase self sufficiency of the main agricultural crops.