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An empirical assessment of the value of irrigation water: the case study of Murrumbidgee catchment

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  • Muhammad Ejaz Qureshi
  • Ram Ranjan
  • Sumaira Ejaz Qureshi

Abstract

Evaluation of value of irrigation water is essential for supporting policy decision making relating to investments in the irrigation sector, efficient allocation of irrigation water and water pricing and for crafting policies to compare the variable impacts of water reform within and across sectors of the economy. This paper asks the question of how much an established irrigator would pay for water and at what price farmers planning to expand the area they have under irrigation would consider paying for the right to access water. An analytical framework is developed to estimate the net present value of both annual and perennial agricultural activities in the Murrumbidgee catchment. Using these estimates the total value of water used in Murrumbidgee catchment is estimated. An aggregate water supply curve is derived for the catchment from where water may be acquired from irrigators for environmental flows. Copyright 2010 The Author. Journal compilation 2010 Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Asia Pty Ltd.

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  • Muhammad Ejaz Qureshi & Ram Ranjan & Sumaira Ejaz Qureshi, 2010. "An empirical assessment of the value of irrigation water: the case study of Murrumbidgee catchment ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(1), pages 99-118, January.
    • Handle: RePEc:bla:ajarec:v:54:y:2010:i:1:p:99-118
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    File URL: http://hdl.handle.net/10.1111/j.1467-8489.2009.00476.x
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    1. M. Ejaz Qureshi & Sumaira E. Qureshi & Tim Goesch & Ahmed Hafi, 2006. "Preliminary Economic Assessment Of Groundwater Extraction Rules," Economic Papers, The Economic Society of Australia, vol. 25(1), pages 41-67, March.
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    4. Qureshi, M. Ejaz & Shi, Tian & Qureshi, Sumaira E. & Proctor, Wendy, 2009. "Removing barriers to facilitate efficient water markets in the Murray-Darling Basin of Australia," Agricultural Water Management, Elsevier, vol. 96(11), pages 1641-1651, November.
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    11. M Ejaz Qureshi & Tian Shi & Sumaira Qureshi & Wendy Proctor & Mac Kirby, 2009. "Removing Barriers to Facilitate Efficient Water Markets in the Murray Darling Basin – A Case Study from Australia," Socio-Economics and the Environment in Discussion (SEED) Working Paper Series 2009-02, CSIRO Sustainable Ecosystems.
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    Cited by:

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    3. John M. Kandulu & Darla Hatton MacDonald & Graeme Dandy & Angela Marchi, 2017. "Ecosystem Service Impacts of Urban Water Supply and Demand Management," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(15), pages 4785-4799, December.
    4. Sarah Ann Wheeler & Ying Xu & Alec Zuo, 2020. "Modelling the climate, water and socio-economic drivers of farmer exit in the Murray-Darling Basin," Climatic Change, Springer, vol. 158(3), pages 551-574, February.
    5. M. E. Qureshi & M. D. Ahmad & S. M. Whitten & A. Reeson & M. Kirby, 2018. "Impact of Climate Variability Including Drought on the Residual Value of Irrigation Water Across the Murray–Darling Basin, Australia," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 1-25, January.
    6. Abbas Mirzaei & Mansour Zibaei, 2021. "Water Conflict Management between Agriculture and Wetland under Climate Change: Application of Economic-Hydrological-Behavioral Modelling," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 35(1), pages 1-21, January.
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    8. Hughes, Neal, 2011. "Estimating irrigation farm production functions using ABARES irrigation survey data," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100564, Australian Agricultural and Resource Economics Society.
    9. Alec Zuo & Sarah Ann Wheeler & Peter Boxall & W. L. (Vic) Adamowicz & Darla Hatton MacDonald, 2015. "Identifying Water Prices at which Australian Farmers Will Exit Irrigation: Results of a Stated Preference Survey," The Economic Record, The Economic Society of Australia, vol. 91(S1), pages 109-123, June.

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