IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v12y2019i14p2667-d247591.html
   My bibliography  Save this article

The Impacts of Water Pricing and Non-Pricing Policies on Sustainable Water Resources Management: A Case of Ghorveh Plain at Kurdistan Province, Iran

Author

Listed:
  • Mohammad Ali Asaadi

    (Department of Agricultural Economics, Tarbiat Modares University, Tehran 14115-336, Iran)

  • Seyed Abolghasem Mortazavi

    (Department of Agricultural Economics, Tarbiat Modares University, Tehran 14115-336, Iran)

  • Omid Zamani

    (Department of Agricultural Market Analysis, Institute of Agricultural Economics, Christian-Albrechts-University Kiel, 24118 Kiel, Germany
    Leibniz-Institut für Agrartechnik und Bioökonomie e.V. (ATB), Max-Eyth-Allee 100, D-14469 Potsdam, Germany)

  • Gholam Hassan Najafi

    (Department of Mechanical & Biosystems Engineering, Tarbiat Modares University, Tehran 14115-336, Iran)

  • Talal Yusaf

    (Office of the Pro Vice-Chancellor, Federation University, Ballarat, VIC 3350, Australia
    Department of Mechanical and Electrical Engineering, University of Southern Queensland, Toowoomba, QLD 4350, Australia)

  • Seyed Salar Hoseini

    (Department of Mechanical & Biosystems Engineering, Tarbiat Modares University, Tehran 14115-336, Iran)

Abstract

As with other regions of Iran, due to excessive extraction of groundwater for intense agricultural activity, Ghorveh plain, a water-scarce irrigation district in the west of Iran, has faced a serious water crisis during the last decade. The present study investigates the impacts of two scenario policies, namely, non-price policy (as a supply-oriented policy) and water pricing policies (as a demand-oriented policy) on agricultural sector of Ghorveh Plain, using positive mathematical programming (PMP). The model was calibrated by using farm-level data for the crop years in 2016–2017. Our findings indicate that applying water supply constraint policy will change the land use and cropping pattern to the crops with higher water productivity. The increase of water resource constraints can lead to the increase of water economic return which indicates a rising value of water resources shortage, warning the producers of the agriculture sector to allocate water to the crops with higher economic value under the water resources shortage conditions. In addition, the findings underline that in a situation where the price of irrigation water is low due to the low elasticity of water demand in the agriculture sector, formulating the economic instruments such as rising water prices does not solely suffice to achieve sustainable water resource management. However, mixed scenarios emphasized that the water distribution policies should be aligned with the increases in water cost.

Suggested Citation

  • Mohammad Ali Asaadi & Seyed Abolghasem Mortazavi & Omid Zamani & Gholam Hassan Najafi & Talal Yusaf & Seyed Salar Hoseini, 2019. "The Impacts of Water Pricing and Non-Pricing Policies on Sustainable Water Resources Management: A Case of Ghorveh Plain at Kurdistan Province, Iran," Energies, MDPI, vol. 12(14), pages 1-16, July.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:14:p:2667-:d:247591
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/12/14/2667/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/12/14/2667/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Paris, Quirino, 2017. "Cost function and positive mathematical programming," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 6(1), May.
    2. Thomas Heckelei & Hendrik Wolff, 2003. "Estimation of constrained optimisation models for agricultural supply analysis based on generalised maximum entropy," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 30(1), pages 27-50, March.
    3. Reddy, M. V., 2009. "User organizations as a demand management option: potentials, problems and prospects," IWMI Books, Reports H042164, International Water Management Institute.
    4. Severini, Simone & Cortignani, Raffaele, 2008. "Introducing deficit irrigation crop techniques derived by crop growth models into a Positive Mathematical Programming model," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44010, European Association of Agricultural Economists.
    5. Richard E. Howitt, 1995. "Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 329-342.
    6. Benli, Bogachan & Kodal, Suleyman, 2003. "A non-linear model for farm optimization with adequate and limited water supplies: Application to the South-east Anatolian Project (GAP) Region," Agricultural Water Management, Elsevier, vol. 62(3), pages 187-203, October.
    7. Gomez-Limon, Jose A. & Riesgo, Laura, 2004. "Irrigation water pricing: differential impacts on irrigated farms," Agricultural Economics, Blackwell, vol. 31(1), pages 47-66, July.
    8. Esteban, Encarna & Albiac, José, 2011. "Groundwater and ecosystems damages: Questioning the Gisser-Sánchez effect," Ecological Economics, Elsevier, vol. 70(11), pages 2062-2069, September.
    9. Heckelei, Thomas, 2005. "Shadow Prices in PMP and Consequences for Calibration and Estimation of Programming Models," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24688, European Association of Agricultural Economists.
    10. Spielman, David J. & Ekboir, Javier & Davis, Kristin, 2009. "The art and science of innovation systems inquiry: Applications to Sub-Saharan African agriculture," Technology in Society, Elsevier, vol. 31(4), pages 399-405.
    11. Tahereh Zobeidi & Masoud Yazdanpanah & Masoumeh Forouzani & Bahman Khosravipour, 2016. "Climate change discourse among Iranian farmers," Climatic Change, Springer, vol. 138(3), pages 521-535, October.
    12. Kaveh Madani, 2014. "Water management in Iran: what is causing the looming crisis?," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 4(4), pages 315-328, December.
    13. Quirino Paris, 2001. "Symmetric Positive Equilibrium Problem: A Framework for Rationalizing Economic Behavior with Limited Information," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 1049-1061.
    14. Quirino Paris & Richard E. Howitt, 1998. "An Analysis of Ill-Posed Production Problems Using Maximum Entropy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 124-138.
    15. Huang, Qiuqiong & Rozelle, Scott & Howitt, Richard & Wang, Jinxia & Huang, Jikun, 2010. "Irrigation water demand and implications for water pricing policy in rural China," Environment and Development Economics, Cambridge University Press, vol. 15(3), pages 293-319, June.
    16. 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.
    17. Pfeiffer, Lisa & Lin, C.-Y. Cynthia, 2012. "Groundwater pumping and spatial externalities in agriculture," Journal of Environmental Economics and Management, Elsevier, vol. 64(1), pages 16-30.
    18. Zamani, Omid & Grundmann, Philipp & Libra, Judy A. & Nikouei, Alireza, 2019. "Limiting and timing water supply for agricultural production – The case of the Zayandeh-Rud River Basin, Iran," Agricultural Water Management, Elsevier, vol. 222(C), pages 322-335.
    19. Reddy, V. R., 2009. "Water pricing as a demand management option: potentials, problems and prospects," IWMI Books, Reports H042159, International Water Management Institute.
    20. Nazari, Bijan & Liaghat, Abdolmajid & Akbari, Mohammad Reza & Keshavarz, Marzieh, 2018. "Irrigation water management in Iran: Implications for water use efficiency improvement," Agricultural Water Management, Elsevier, vol. 208(C), pages 7-18.
    21. Sharma, Rakesh Kumar & Sankhayan, Prem Lall & Singh, Ranveer, 2009. "Analysis of profitability and risk in new agriculture in a Himalayan watershed by using dynamic non-linear programming model," 2009 Conference, August 16-22, 2009, Beijing, China 51404, International Association of Agricultural Economists.
    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. Zamani, Omid & Azadi, Hossein & Mortazavi, Seyed Abolghasem & Balali, Hamid & Moghaddam, Saghi Movahhed & Jurik, Lubos, 2021. "The impact of water-pricing policies on water productivity: Evidence of agriculture sector in Iran," Agricultural Water Management, Elsevier, vol. 245(C).
    2. Rocío Poveda-Bautista & Bernat Roig-Merino & Herminia Puerto & Juan Buitrago-Vera, 2021. "Assessment of Irrigation Water Use Efficiency in Citrus Orchards Using AHP," IJERPH, MDPI, vol. 18(11), pages 1-14, May.
    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).

    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. Cortignani, Raffaele & Severini, Simone, 2010. "The impact of reforming the Common Agricultural Policy on the sustainability of the irrigated area of Central Italy. An empirical assessment by means of a Positive Mathematical Programming model," 120th Seminar, September 2-4, 2010, Chania, Crete 109318, European Association of Agricultural Economists.
    2. Najafi Alamdarlo, Hamed & Pourmozafar, Hosein & Vakilpoor, Mohamad Hasan, 2019. "Improving demand technology and internalizing external effects in groundwater market framework, case study: Qazvin plain in Iran," Agricultural Water Management, Elsevier, vol. 213(C), pages 164-173.
    3. 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.
    4. Fragoso, R. & Marques, C. & Lucas, M.R. & Martins, M.B. & Jorge, R., 2011. "The economic effects of common agricultural policy on Mediterranean montado/dehesa ecosystem," Journal of Policy Modeling, Elsevier, vol. 33(2), pages 311-327, March.
    5. Gocht, Alexander, 2005. "Assessment of Simulation Behavior of Different Mathematical Programming Approaches," 89th Seminar, February 2-5, 2005, Parma, Italy 232598, European Association of Agricultural Economists.
    6. Donati, Michele & Bodini, Diego & Arfini, Filippo & Zezza, Annalisa, 2013. "An integrated PMP model to assess the development of agro-energy crops and the effect on water requirements," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 2(3), pages 1-21, December.
    7. Arfini, Filippo & Donati, Michele & Paris, Quirino, 2008. "Innovation in Estimation of Revenue and Cost Functions in PMP Using FADN Information at Regional Level," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44008, European Association of Agricultural Economists.
    8. Affuso, Ermanno & Hite, Diane, 2013. "A model for sustainable land use in biofuel production: An application to the state of Alabama," Energy Economics, Elsevier, vol. 37(C), pages 29-39.
    9. Heckelei, Thomas & Britz, Wolfgang, 2005. "Models Based on Positive Mathematical Programming: State of the Art and Further Extensions," 89th Seminar, February 2-5, 2005, Parma, Italy 234607, European Association of Agricultural Economists.
    10. Lee, Hwarang & Eom, Jiyong & Cho, Cheolhung & Koo, Yoonmo, 2019. "A bottom-up model of industrial energy system with positive mathematical programming," Energy, Elsevier, vol. 173(C), pages 679-690.
    11. Zamani, Omid & Grundmann, Philipp & Libra, Judy A. & Nikouei, Alireza, 2019. "Limiting and timing water supply for agricultural production – The case of the Zayandeh-Rud River Basin, Iran," Agricultural Water Management, Elsevier, vol. 222(C), pages 322-335.
    12. Heckelei, Thomas & Britz, Wolfgang & Zhang, Yinan, 2012. "Positive Mathematical Programming Approaches – Recent Developments in Literature and Applied Modelling," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 1(1), pages 1-16, April.
    13. Arata, Linda & Donati, Michele & Sckokai, Paolo & Arfini, Filippo, 2014. "Incorporating risk in a positive mathematical programming framework: a new methodological approach," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182659, European Association of Agricultural Economists.
    14. Alain Carpentier & Elodie Letort, 2010. "Simple econometric models for short term production choices in cropping systems," Working Papers SMART 10-11, INRAE UMR SMART.
    15. Polome, Philippe & Fernagut, Bruno & Harmignie, Olivier & Frahan, Bruno Henry de, 2005. "Multi-input Multi-output Farm-level Cost Function: A Comparison of Least Squares and Entropy Estimators," 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark 24727, European Association of Agricultural Economists.
    16. Arfini, Filippo & Donati, Michele & Grossi, L. & Paris, Quirino, 2008. "Revenue and Cost Functions in PMP: a Methodological Integration for a Territorial Analysis of CAP," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6636, European Association of Agricultural Economists.
    17. Carpentier, Alain & Letort, Elodie, 2009. "Modeling acreage decisions within the multinomial Logit framework," Working Papers 211011, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    18. Msangi, Siwa & Howitt, Richard E., 2006. "Estimating Disaggregate Production Functions: An Application to Northern Mexico," 2006 Annual meeting, July 23-26, Long Beach, CA 21080, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Britz, Wolfgang & Linda, Arata, "undated". "How Important Are Crop Shares In Managing Risk For Specialized Arable Farms? A Panel Estimation Of A Programming Model For Three European Regions," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244801, German Association of Agricultural Economists (GEWISOLA).
    20. Louhichi, Kamel & Flichman, Guillermo & Blanco Fonseca, Maria, 2009. "A generic template for FSSIM," Reports 57463, Wageningen University, SEAMLESS: System for Environmental and Agricultural Modelling; Linking European Science and Society.

    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:gam:jeners:v:12:y:2019:i:14:p:2667-:d:247591. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.