IDEAS home Printed from https://ideas.repec.org/a/eee/agiwat/v181y2017icp85-93.html
   My bibliography  Save this article

Feasibility of adopting smart water meters in aquifer management: An integrated hydro-economic analysis

Author

Listed:
  • Zekri, Slim
  • Madani, Kaveh
  • Bazargan-Lari, Mohammad Reza
  • Kotagama, Hemesiri
  • Kalbus, Edda

Abstract

The feasibility of groundwater monitoring was investigated by a case study on adopting smart water meters to measure groundwater extraction at individual farms and a centralized online information management system to measure collective aquifer water extraction. Benefits of optimal groundwater management was estimated using hydro-economic models that simulate, for a 70-year period, private and social optimality, taking into account the effects of seawater intrusion on groundwater salinity. A Bayesian inference system was used as an interface between a dynamic programming model and MODFLOW groundwater simulation model. The case study’s cost data were scaled-up to the aquifer level and compared to the incremental benefits between private and socially optimal water extraction. The results showed that the Net Present Value of measuring and monitoring groundwater extraction using smart water meters as $790 million ($1332/ha/year) with an Internal Rate of Return of 93%. The sustainable use of the aquifer results to a reduction of the cropped area by 10%, a reduction of the groundwater extraction by 20%, a change in the crop mix, and 42% of the least-efficient farms exiting farming. The exiting farmers could convert farm lands to other land uses such as residential, urban, industrial land use, with adequate facilitation provided by the government. The impact of change of groundwater management strategy on the arid ecology with reduction in tree cover is noted.

Suggested Citation

  • Zekri, Slim & Madani, Kaveh & Bazargan-Lari, Mohammad Reza & Kotagama, Hemesiri & Kalbus, Edda, 2017. "Feasibility of adopting smart water meters in aquifer management: An integrated hydro-economic analysis," Agricultural Water Management, Elsevier, vol. 181(C), pages 85-93.
    • Handle: RePEc:eee:agiwat:v:181:y:2017:i:c:p:85-93
    DOI: 10.1016/j.agwat.2016.11.022
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0378377416304735
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.agwat.2016.11.022?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Steven S. Vickner & Dana L. Hoag & W. Marshall Frasier & James C. Ascough, 1998. "A Dynamic Economic Analysis of Nitrate Leaching in Corn Production under Nonuniform Irrigation Conditions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 397-408.
    2. Foster, S., 2012. "Groundwater resources and irrigated agriculture: making a beneficial relation more sustainable," IWMI Working Papers H045034, International Water Management Institute.
    3. Douglas M. Larson & Gloria E. Helfand & Brett W. House, 1996. "Second-Best Tax Policies to Reduce Nonpoint Source Pollution," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 1108-1117.
    4. Kumar, M. Dinesh, 2005. "Impact of electricity prices and volumetric water allocation on energy and groundwater demand management:: analysis from Western India," Energy Policy, Elsevier, vol. 33(1), pages 39-51, January.
    5. Zekri, Slim, 2008. "Using economic incentives and regulations to reduce seawater intrusion in the Batinah coastal area of Oman," Agricultural Water Management, Elsevier, vol. 95(3), pages 243-252, March.
    6. Madani, Kaveh & Dinar, Ariel, 2012. "Non-cooperative institutions for sustainable common pool resource management: Application to groundwater," Ecological Economics, Elsevier, vol. 74(C), pages 34-45.
    7. Kumar, Dinesh M., 2013. "Raising Agricultural Productivity, Reducing Groundwater Use and Mitigating Carbon Emissions: Role of Energy Pricing in Farm Sector," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 68(3), pages 1-17.
    8. Strand, Jon, 2010. "The full economic cost of groundwater extraction," Policy Research Working Paper Series 5494, The World Bank.
    9. Slim Zekri & Chefi Triki & Ali Al-Maktoumi & Mohammad Bazargan-Lari, 2015. "An Optimization-Simulation Approach for Groundwater Abstraction under Recharge Uncertainty," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 29(10), pages 3681-3695, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Amar Oukil & Slim Zekri, 2021. "Investigating farming efficiency through a two stage analytical approach: Application to the agricultural sector in Northern Oman," Papers 2104.10943, arXiv.org.
    2. Aein, Reza & Alizadeh, Hosein, 2021. "Integrated hydro-economic modeling for optimal design of development scheme of salinity affected irrigated agriculture in Helleh River Basin," Agricultural Water Management, Elsevier, vol. 243(C).
    3. Benjamin Ouvrard & Raphaële Préget & Arnaud Reynaud & Laetitia Tuffery, 2020. "Nudging and Subsidizing Farmers to Foster Smart Water Meter Adoption," Working Papers hal-02958784, HAL.
    4. Sidhu, Balsher Singh & Kandlikar, Milind & Ramankutty, Navin, 2020. "Power tariffs for groundwater irrigation in India: A comparative analysis of the environmental, equity, and economic tradeoffs," World Development, Elsevier, vol. 128(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alain Ayong Le Kama & Agnès Tomini, 2012. "Water Conservation versus Soil Salinity Control," EconomiX Working Papers 2012-8, University of Paris Nanterre, EconomiX.
    2. Phoebe Koundouri, 2004. "Current Issues in the Economics of Groundwater Resource Management," Journal of Economic Surveys, Wiley Blackwell, vol. 18(5), pages 703-740, December.
    3. M. Dinesh Kumar, 2016. "Distressed Elephants: Policy Initiatives for Sustainable Groundwater Management in India," IIM Kozhikode Society & Management Review, , vol. 5(1), pages 51-62, January.
    4. Roseta-Palma, Catarina, 2002. "Groundwater Management When Water Quality Is Endogenous," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 93-105, July.
    5. Kumar, M. D. & Amarasinghe, Upali A. & Sharma, Bharat R. & Trivedi, Kairav & Singh, O. P. & Sikka, Alok K. & van Dam, Jos C., 2009. "Water productivity improvements in Indian Agriculture: potentials, constraints and prospects," IWMI Conference Proceedings 260570, International Water Management Institute.
    6. Kumar, M. Dinesh & Amarasinghe, Upali A., 2009. "Water productivity improvements in Indian agriculture: potentials, constraints and prospects," Book Chapters,, International Water Management Institute.
    7. Kumar, M. Dinesh, 2009. "Opportunities and constraints to improving water productivity in India," Book Chapters,, International Water Management Institute.
    8. Alain Ayong Le Kama & Agnès Tomini, 2012. "Water Conservation versus Soil Salinity Control," Working Papers hal-04141151, HAL.
    9. Kumar, M. Dinesh & Amarasinghe, Upali A., 2009. "Water productivity improvements in Indian agriculture: potentials, constraints and prospects," IWMI Books, Reports H042634, International Water Management Institute.
    10. Reena Badiani-Magnusson & Katrina Jessoe, 2018. "Electricity Prices, Groundwater, and Agriculture: The Environmental and Agricultural Impacts of Electricity Subsidies in India," NBER Chapters, in: Agricultural Productivity and Producer Behavior, pages 157-183, National Bureau of Economic Research, Inc.
    11. Kumar, M. Dinesh, 2009. "Opportunities and constraints to improving water productivity in India," IWMI Books, Reports H042640, International Water Management Institute.
    12. Athukorala, Wasantha & Wilson, Clevo & Managi, Shunsuke, 2017. "Social welfare losses from groundwater over-extraction for small-scale agriculture in Sri Lanka: Environmental concern for land use," Journal of Forest Economics, Elsevier, vol. 29(PA), pages 47-55.
    13. Qiu, Zeyuan & Prato, Anthony A., 1999. "Accounting For Spatial Characteristics Of Watersheds In Evaluating Water Pollution Abatement Policies," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 31(1), pages 1-15, April.
    14. Madan K. Jha & Richard C. Peralta & Sasmita Sahoo, 2020. "Simulation-Optimization for Conjunctive Water Resources Management and Optimal Crop Planning in Kushabhadra-Bhargavi River Delta of Eastern India," IJERPH, MDPI, vol. 17(10), pages 1-20, May.
    15. Disha Gupta, 2023. "Free power, irrigation, and groundwater depletion: Impact of farm electricity policy of Punjab, India," Agricultural Economics, International Association of Agricultural Economists, vol. 54(4), pages 515-541, July.
    16. Ghadir Asadi & Mohammad H. Mostafavi-Dehzooei, 2022. "The Role of Learning in Adaptation to Technology: The Case of Groundwater Extraction," Sustainability, MDPI, vol. 14(12), pages 1-37, June.
    17. José Albiac, 2006. "The Case of the Water Framework Directive and Irrigation in Mediterranean Agriculture," Human Development Occasional Papers (1992-2007) HDOCPA-2006-34, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    18. Ribaudo, Marc O. & Heimlich, Ralph & Claassen, Roger & Peters, Mark, 2001. "Least-cost management of nonpoint source pollution: source reduction versus interception strategies for controlling nitrogen loss in the Mississippi Basin," Ecological Economics, Elsevier, vol. 37(2), pages 183-197, May.
    19. Kumar, M. Dinesh & Singh, O.P. & Samad, Madar & Purohit, Chaitali & Didyala, Malkit Singh, 2009. "Water productivity of irrigated agriculture in India: potential areas for improvement," Book Chapters,, International Water Management Institute.
    20. Amar Oukil & Slim Zekri, 2021. "Investigating farming efficiency through a two stage analytical approach: Application to the agricultural sector in Northern Oman," Papers 2104.10943, arXiv.org.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:agiwat:v:181:y:2017:i:c:p:85-93. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/agwat .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.