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Strategic Policy Options to Improve Irrigation Water Allocation Efficiency: Analysis on Egypt and Morocco

  • He, Lixia
  • Tyner, Wallace E.
  • Doukkali, Rachid
  • Siam, Gamal
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    For a number of reasons government the world over have been unwilling to use water pricing to achieve water use efficiency. This research addresses questions of what policy alternatives to water pricing might improve irrigation water allocation efficiency. An empirical framework is provided to compare irrigation policies for allocating scarce water to agricultural production in Egypt and Morocco. Partial equilibrium agricultural sector models specific to Egypt and Morocco were employed for policy tests. Positive Mathematical Programming (PMP) was used to calibrate the models. Water pricing policy, water complementary input factor tax policy, and output tax policy are tested. Results suggest that effective policy depends on the social, economic, and environmental contexts of specific regions. The results for both countries demonstrate that some of the alternative irrigation policies can work towards directing cropping decisions to less water intensive crops and also generating revenues for governments in situations where governments choose not to price water.

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    File URL: http://purl.umn.edu/19467
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    Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2005 Annual meeting, July 24-27, Providence, RI with number 19467.

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    Date of creation: 2005
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    Handle: RePEc:ags:aaea05:19467
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    1. Perry, C. J., 1996. "Alternative approaches to cost sharing for water service to agriculture in Egypt," IWMI Research Reports H 18207, International Water Management Institute.
    2. Perry, C. J., 1996. "Alternative approaches to cost sharing for water service to agriculture in Egypt," IWMI Books, Reports H018207, International Water Management Institute.
    3. Tsur, Yacov & Dinar, Ariel, 1997. "The Relative Efficiency and Implementation Costs of Alternative Methods for Pricing Irrigation Water," World Bank Economic Review, World Bank Group, vol. 11(2), pages 243-62, May.
    4. Dinar, Ariel & Rosegrant, Mark W. & Meinzen-Dick, Ruth, 1997. "Water allocation mechanisms : principles and examples," Policy Research Working Paper Series 1779, The World Bank.
    5. Xinshen Diao & Terry Roe & Agapi Somwaru, 2002. "Developing Country Interests in Agricultural Reforms under the World Trade Organization," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 782-790.
    6. Johansson, Robert C., 2000. "Pricing irrigation water : a literature survey," Policy Research Working Paper Series 2449, The World Bank.
    7. Rosegrant, Mark W. & Binswanger, Hans P., 1994. "Markets in tradable water rights: Potential for efficiency gains in developing country water resource allocation," World Development, Elsevier, vol. 22(11), pages 1613-1625, November.
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