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Irrigation water pricing: policy implications based on international comparison

Author

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  • TSUR, YACOV
  • DINAR, ARIEL
  • DOUKKALI, RACHID M.
  • ROE, TERRY

Abstract

This paper is concerned with the regulation of irrigation water via pricing. The main concepts underlying efficient water use are first discussed and then applied in actual practice to demonstrate empirically how readily available data can be used to implement pricing schemes that achieve efficient allocation of water. The policy discussion includes also equity considerations. The empirical findings, however, reveal that water prices have a small effect on income distribution within the farming sector, thereby supporting the view that water pricing should be designed primarily to increase the efficiency of water use, leaving income distribution considerations to other policy tools.

Suggested Citation

  • Tsur, Yacov & Dinar, Ariel & Doukkali, Rachid M. & Roe, Terry, 2004. "Irrigation water pricing: policy implications based on international comparison," Environment and Development Economics, Cambridge University Press, vol. 9(6), pages 735-755, December.
    • Handle: RePEc:cup:endeec:v:9:y:2004:i:06:p:735-755_00
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    Citations

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    Cited by:

    1. Elame, Fouad & Diukkali, Rachid, 2011. "Water Valuation in Agriculture under climate change (Case of Souss-Massa Basin, Morocco)," 2011 Conference: Impacts of Climate Change on Agriculture, December 6-7, 2011, Rabat, Morocco 188553, Moroccan Association of Agricultural Economics (AMAEco).
    2. Vos, Jeroen & Vincent, Linden, 2011. "Volumetric water control in a large-scale open canal irrigation system with many smallholders: The case of Chancay-Lambayeque in Peru," Agricultural Water Management, Elsevier, vol. 98(4), pages 705-714, February.
    3. Calzadilla, Alvaro & Rehdanz, Katrin & Tol, Richard S.J., 2008. "Water scarcity and the impact of improved irrigation management: A CGE analysis," Conference papers 331788, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Athanasios Kampas & Stelios Rozakis, 2017. "On the Scarcity Value of Irrigation Water: Juxtaposing Two Market Estimating Approaches," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(4), pages 1257-1269, March.
    5. Roe, Terry & Dinar, Ariel & Tsur, Yacov & Diao, Xinshen, 2005. "Feedback links between economy-wide and farm-level policies: With application to irrigation water management in Morocco," Journal of Policy Modeling, Elsevier, vol. 27(8), pages 905-928, November.
    6. Tang, Jianjun & Folmer, Henk & Xue, Jianhong, 2015. "Technical and allocative efficiency of irrigation water use in the Guanzhong Plain, China," Food Policy, Elsevier, vol. 50(C), pages 43-52.
    7. Roe, Terry & Dinar, Ariel & Tsur, Yacov & Xinshen Diao, 2005. "Feedback links between economy-wide and farm-level policies : application to irrigation water management in Morocco," Policy Research Working Paper Series 3550, The World Bank.
    8. Alvaro Calzadilla & Katrin Rehdanz & Richard S.J. Tol, 2008. "The Eonomic Impact Of More Sustainable Water Use In Agriculture: A Computable General Equilibrium Analysis," Working Papers FNU-169, Research unit Sustainability and Global Change, Hamburg University, revised Dec 2008.
    9. Javier Martínez-Dalmau & Carlos Gutiérrez-Martín & Alfonso Expósito & Julio Berbel, 2023. "Analysis of Water Pricing Policy Effects in a Mediterranean Basin Through a Hydroeconomic Model," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 37(4), pages 1599-1618, March.
    10. Muhammad Arfan, 2022. "Mapping Impact of Farmer’s Organisation on the Equity of Water and Land Productivity: Evidence from Pakistan (Article)," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 61(2), pages 275-294.
    11. Kahil, Mohamed Taher & Albiac, Jose & Dinar, Ariel, 2014. "The Debate on Water Policies: Evidence from Drought in Spain," Working Papers 206460, Agrifood Research and Technology Center (CITA-Government of Aragon), Department of Agricultural Economics.
    12. Alves, Gabriel de Sampaio Morais & Fulginiti, Lilyan & Perrin, Richard & Braga, Marcelo José, 2021. "The Use Value of Irrigation Water for Brazilian Agriculture," 2021 Conference, August 17-31, 2021, Virtual 315861, International Association of Agricultural Economists.
    13. Dinar, Ariel, 2012. "Economy-wide implications of direct and indirect policy interventions in the water sector: lessons from recent work and future research needs," Policy Research Working Paper Series 6068, The World Bank.
    14. Gebretsadik, Kidanemariam Abreha & Romstad, Eirik, 2020. "Climate and farmers’ willingness to pay for improved irrigation water supply," World Development Perspectives, Elsevier, vol. 20(C).
    15. Jianjun Tang & Henk Folmer & Arno J. Vlist & Jianhong Xue, 2014. "The impacts of management reform on irrigation water use efficiency in the Guanzhong plain, China," Papers in Regional Science, Wiley Blackwell, vol. 93(2), pages 455-475, June.
    16. Palatnik, Ruslana & Shechter, Mordechai, 2008. "Can Climate Change Mitigation Policy be Beneficial for the Israeli Economy? A Computable General Equilibrium Analysis," Conference papers 331792, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    17. Ouraich, Ismail & Tyner, Wallace E., 2011. "A CGE Analysis of Economy-wide Impacts of Climate Change on Agriculture in Morocco," 2011 Conference: Impacts of Climate Change on Agriculture, December 6-7, 2011, Rabat, Morocco 188121, Moroccan Association of Agricultural Economics (AMAEco).
    18. Sidibe, Yoro & Williams, Timothy O., 2015. "Valuation of water in large-scale agricultural land investments in Mali: Efficiency and equity trade-offs," 2015 Conference, August 9-14, 2015, Milan, Italy 212235, International Association of Agricultural Economists.
    19. Cakmak, Erol H. & Dudu, Hasan & Saracoglu, Sirin & Diao, Xinshen & Roe, Terry & Tsur, Yacov, 2008. "Macro-Micro Feedback Links Of Irrigation Water Management In Turkey," Policy Research Working Paper Series 4781, The World Bank.
    20. Hefa Cheng & Yuanan Hu, 2012. "Improving China’s water resources management for better adaptation to climate change," Climatic Change, Springer, vol. 112(2), pages 253-282, May.
    21. Hassan, Wasim & Manzoor, Talha & Jaleel, Hassan & Muhammad, Abubakr, 2021. "Demand-based water allocation in irrigation systems using mechanism design: A case study from Pakistan," Agricultural Water Management, Elsevier, vol. 256(C).
    22. Djiby Racine Thiam & Ariel Dinar & Hebert Ntuli, 2021. "Promotion of residential water conservation measures in South Africa: the role of water-saving equipment," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 23(1), pages 173-210, January.
    23. Boelens, Rutgerd & Vos, Jeroen, 2012. "The danger of naturalizing water policy concepts: Water productivity and efficiency discourses from field irrigation to virtual water trade," Agricultural Water Management, Elsevier, vol. 108(C), pages 16-26.

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