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Measuring Benefits to Operation and Maintenance Expenditure in the Canal Irrigation System of Pakistan: A Simulation Analysis

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  • Muhammad A. Chaudhry
  • Mubarik Ali

Abstract

Estimates regarding benefits to O&M investments help rationalize financial allocation decisions. A distributed lag model is used to estimate the contribution to agricultural productivity of funds utilized for O&M of the canal system in Pakistani Punjab. Estimated parameters are used to simulate the effects of alternative O&M investment scenarios on agricultural output, farm prices and income. Marginal benefits to past and prospective O&M investments in the canal irrigation system were found to be fairly high, suggesting the need to allocate more funds for O&M of the canal system. Results indicate that O&M investments yield substantial gains to both producers and consumers, implying that funds required for O&M activities could be generated by taxing both these segments of society.

Suggested Citation

  • Muhammad A. Chaudhry & Mubarik Ali, 1989. "Measuring Benefits to Operation and Maintenance Expenditure in the Canal Irrigation System of Pakistan: A Simulation Analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 3(3), pages 199-212, October.
    • Handle: RePEc:bla:agecon:v:3:y:1989:i:3:p:199-212
    DOI: 10.1111/j.1574-0862.1989.tb00084.x
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    Cited by:

    1. Barmon, Basanta Kumar, 2016. "Impacts of the Alternate Wetting and Drying Irrigation System on Modern Varieties of Paddy Production in Bangladesh: A Case Study of Jessore District," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 39(3-4), pages 77-104, sept-dec.
    2. Muhammad Aslam Chaudhry & Robert A. Young, 1990. "Privatizing Public Irrigation Tubewells in Pakistan: An Appraisal of Alternatives," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 29(1), pages 33-58.

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