Demand for Irrigation Water for Pistachio Production from Depleting Groundwater Resources: Spatial Econometric Approach
AbstractDepletion of groundwater resources is an international problem, and groundwater is probably the world’s most extracted raw material. The agriculture sector is one of the biggest users of groundwater resources for irrigation activities, and it plays an important role in the depletion of these resources. The estimation of demand function for groundwater resources is the first step toward any policy recommendation in this field of research. However, only scarce attention has been given to empirical studies of the demand structure of groundwater resources by the help of econometrics and considering the quality of the resources in the context of a single aquifer. Therefore, an empirical estimation of the demand function for individual users which considers water quality enhances further economic analysis and results in better policy recommendations. In this study, we have analysed the economic factors and the groundwater quality as influencing variables on derived demand function for irrigation water in the pistachio production of the Rafsanjan aquifer in the southeastern part of Iran. The field study was conducted from November 2008- February 2009. Translog cost function has been applied for the estimation of the derived demand function for groundwater in pistachio production and its shadow price. The spatial econometrics has been applied to correct the results. Results show that water pumping costs are much less than their shadow prices.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland with number 114457.
Date of creation: 2011
Date of revision:
Groundwater resources; derived demand function; pistachio; Rafsanjan; Crop Production/Industries; Resource /Energy Economics and Policy;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-15 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Guyomard, Herve & Vermersch, Dominique, 1989. "Derivation of long-run factor demands from short-run responses," Agricultural Economics, Blackwell, vol. 3(3), pages 213-230, October.
- Kelejian, Harry H. & Robinson, Dennis P., 1992. "Spatial autocorrelation : A new computationally simple test with an application to per capita county police expenditures," Regional Science and Urban Economics, Elsevier, vol. 22(3), pages 317-331, September.
- Kelejian, Harry H. & Prucha, Ingmar R., 2004. "Estimation of simultaneous systems of spatially interrelated cross sectional equations," Journal of Econometrics, Elsevier, vol. 118(1-2), pages 27-50.
- 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.
- Koundouri, Phoebe, 2004. "Current issues in the economics of groundwater resource management," MPRA Paper 38425, University Library of Munich, Germany.
- Phoebe Koundouri, . "Current issues in the economics of groundwater resource management," DEOS Working Papers 0402, Athens University of Economics and Business.
- Kelejian, Harry H & Prucha, Ingmar R, 1999. "A Generalized Moments Estimator for the Autoregressive Parameter in a Spatial Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(2), pages 509-33, May.
- Arne Henningsen & Jeff D. Hamann, . "systemfit: A Package for Estimating Systems of Simultaneous Equations in R," Journal of Statistical Software, American Statistical Association, vol. 23(i04).
- Boland, Michael A. & Marsh, Thomas L., 2006. "Input Quality in the Sugar Beet Industry," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(01), April.
- Halvorsen, Robert & Smith, Tim R, 1991. "A Test of the Theory of Exhaustible Resources," The Quarterly Journal of Economics, MIT Press, vol. 106(1), pages 123-40, February.
- Jeffrey P. Cohen & Catherine Morrison Paul, 2007. "The Impacts Of Transportation Infrastructure On Property Values: A Higher-Order Spatial Econometrics Approach," Journal of Regional Science, Wiley Blackwell, vol. 47(3), pages 457-478.
- Pope, Rulon D & Chambers, Robert G, 1989. "Price Aggregation When Price-Taking Firms' Prices Vary," Review of Economic Studies, Wiley Blackwell, vol. 56(2), pages 297-309, April.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.