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Implications of current and alternative water allocation policies in the Bow River Sub Basin of Southern Alberta

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  • Ali, Md Kamar
  • Klein, K.K.

Abstract

In this study, economic implications of allocating surface water with the existing policy (seniority rule) and three other alternative (People First, proportional reduction, and trading) policies are investigated to address potential water scarcities in the Bow River Sub Basin (BRSB) of Southern Alberta using a mathematical programming model. The model used an improved calibration technique and 2008 data for three irrigation and three non-irrigation sector users in the BRSB. Results indicate that while the seniority rule favors senior license holding irrigation users and the People First policy favors municipal sector users, irrigation users are better off with the proportional allocation policy even though it affects all users across-the-board. Moreover, if the users can participate in costless trades, then non-irrigation users tend to buy water as they place high value on water at the margin. Some irrigation users find selling water more profitable than utilizing their allocations for crop production.

Suggested Citation

  • Ali, Md Kamar & Klein, K.K., 2014. "Implications of current and alternative water allocation policies in the Bow River Sub Basin of Southern Alberta," Agricultural Water Management, Elsevier, vol. 133(C), pages 1-11.
  • Handle: RePEc:eee:agiwat:v:133:y:2014:i:c:p:1-11
    DOI: 10.1016/j.agwat.2013.10.013
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    References listed on IDEAS

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    1. Lixia He & Theodore M. Horbulyk, 2010. "Market‐Based Policy Instruments, Irrigation Water Demand, and Crop Diversification in the Bow River Basin of Southern Alberta," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(2), pages 191-213, June.
    2. Blanco, Maria & Cortignani, Raffaele & Severini, Simone, 2008. "Evaluating Changes in Cropping Patterns due to the 2003 CAP Reform. An Ex-post Analysis of Different PMP Approaches Considering New Activities," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6674, European Association of Agricultural Economists.
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    7. Mahan, Robert C. & Horbulyk, Theodore M. & Rowse, John G., 2002. "Market mechanisms and the efficient allocation of surface water resources in southern Alberta," Socio-Economic Planning Sciences, Elsevier, vol. 36(1), pages 25-49, March.
    8. Steven Renzetti, 1993. "Examining the Differences in Self- and Publicly Supplied Firms' Water Demands," Land Economics, University of Wisconsin Press, vol. 69(2), pages 181-188.
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    10. He, Lixia & Horbulyk, Theodore M. & Ali, Md. Kamar & Le Roy, Danny G. & Klein, K.K., 2012. "Proportional water sharing vs. seniority-based allocation in the Bow River basin of Southern Alberta," Agricultural Water Management, Elsevier, vol. 104(C), pages 21-31.
    11. Cortignani, Raffaele & Severini, Simone, 2009. "Modeling farm-level adoption of deficit irrigation using Positive Mathematical Programming," Agricultural Water Management, Elsevier, vol. 96(12), pages 1785-1791, December.
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    Cited by:

    1. Md Kamar Ali, 2016. "Improving Allocative Efficiency of Scarce Water in Southern Alberta," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(02), pages 1-22, June.
    2. R. Roozbahani & B. Abbasi & S. Schreider & A. Ardakani, 2014. "A Multi-objective Approach for Transboundary River Water Allocation," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 28(15), pages 5447-5463, December.
    3. Wang, Shuping & Tan, Qian & Zhang, Tianyuan & Zhang, Tong, 2022. "Water management policy analysis: Insight from a calibration-based inexact programming method," Agricultural Water Management, Elsevier, vol. 269(C).
    4. R. Roozbahani & B. Abbasi & S. Schreider & J. Iversen, 2021. "Dam Location-Allocation under Multiple Hydrological Scenarios," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 35(3), pages 993-1009, February.
    5. Jinxia Wang & Henning Bjornlund & K. K. Klein & Lijuan Zhang & Wencui Zhang, 2016. "Factors that Influence the Rate and Intensity of Adoption of Improved Irrigation Technologies in Alberta, Canada," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(03), pages 1-32, September.

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    More about this item

    Keywords

    Positive mathematical programming; Allocative efficiency; Seniority rule; Proportional allocation; Trading;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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