IDEAS home Printed from https://ideas.repec.org/p/ags/aare11/100571.html
   My bibliography  Save this paper

Water Management In Bangladesh Agriculture: Optimal Use And Investment Policies For Adaptation To Climate Change

Author

Listed:
  • Khan, Mohammad Ismail

Abstract

In Bangladesh, climatic change is likely to impact significantly upon surface and groundwater availability, as well as in other countries. The population of Bangladesh is projected to be double the current 2010 level by 2050. Demand for water will rise with the increasing demand for rice. This paper considers the optimal demand management of irrigation water with stochastic supply under climate change for a 3-year planning horizon. It also identifies the utilization of irrigation water from surface water sources to maximize the expected net social return from rice production. This is done by considering decision on dam release for rice production with reference to climate change. A stochastic dynamic programming model is developed for analyzing the levels and timing of the allocation of surface water for irrigation. The objective is to find the optimal dam release for irrigation which results in the maximum expected present value of the stream of annual net social return from rice production for the 3 years from 2012 to 2014. Net social return in a year consists of the value of rice consumed, measured by consumers’ willingness to pay for rice, less the total cost of rice production. The paper also identifies the need for irrigation infrastructure and determines the optimal investment policies for the adaptation to climate change in Bangladesh agriculture.

Suggested Citation

  • Khan, Mohammad Ismail, 2011. "Water Management In Bangladesh Agriculture: Optimal Use And Investment Policies For Adaptation To Climate Change," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100571, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare11:100571
    DOI: 10.22004/ag.econ.100571
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/100571/files/Khan%20m.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.100571?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kenneth L. Judd, 1998. "Numerical Methods in Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262100711, December.
    2. Marnie Griffith & Gary Codner & Erwin Weinmann & Sergei Schreider, 2009. "Modelling hydroclimatic uncertainty and short-run irrigator decision making: the Goulburn system ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), pages 565-584, October.
    3. -, 2009. "The economics of climate change," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 38679, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    Full references (including those not matched with items on IDEAS)

    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. Hermeling, Claudia & Löschel, Andreas & Mennel, Tim, 2013. "A new robustness analysis for climate policy evaluations: A CGE application for the EU 2020 targets," Energy Policy, Elsevier, vol. 55(C), pages 27-35.
    2. Brock, William & Engström, Gustav & Xepapadeas, Anastasios, 2014. "Spatial climate-economic models in the design of optimal climate policies across locations," European Economic Review, Elsevier, vol. 69(C), pages 78-103.
    3. Lontzek, Thomas S. & Narita, Daiju, 2009. "The effect of uncertainty on decision making about climate change mitigation: a numerical approach of stochastic control," Kiel Working Papers 1539, Kiel Institute for the World Economy (IfW Kiel).
    4. Hwang, In Chang & Tol, Richard S.J. & Hofkes, Marjan W., 2016. "Fat-tailed risk about climate change and climate policy," Energy Policy, Elsevier, vol. 89(C), pages 25-35.
    5. Ton S. van den Bremer & Frederick van der Ploeg, 2021. "The Risk-Adjusted Carbon Price," American Economic Review, American Economic Association, vol. 111(9), pages 2782-2810, September.
    6. Hwang, In Chang & Reynès, Frédéric & Tol, Richard S.J., 2017. "The effect of learning on climate policy under fat-tailed risk," Resource and Energy Economics, Elsevier, vol. 48(C), pages 1-18.
    7. Yongyang Cai & Thomas S. Lontzek, 2019. "The Social Cost of Carbon with Economic and Climate Risks," Journal of Political Economy, University of Chicago Press, vol. 127(6), pages 2684-2734.
    8. Nævdal, Eric, 2015. "Catastrophes and Expected Marginal Utility – How The Value Of The Last Fish In A Lake Is Infinity And Why We Shouldn't Care (Much)," Memorandum 08/2015, Oslo University, Department of Economics.
    9. Springborn, Michael & Sanchirico, James N., 2013. "A density projection approach for non-trivial information dynamics: Adaptive management of stochastic natural resources," Journal of Environmental Economics and Management, Elsevier, vol. 66(3), pages 609-624.
    10. Gianluigi Cisco & Andrea Gatto, 2021. "Climate Justice in an Intergenerational Sustainability Framework: A Stochastic OLG Model," Economies, MDPI, vol. 9(2), pages 1-13, April.
    11. Leizarowitz, Arie & Tsur, Yacov, 2012. "Renewable resource management with stochastic recharge and environmental threats," Journal of Economic Dynamics and Control, Elsevier, vol. 36(5), pages 736-753.
    12. Nævdal, Eric, 2016. "Catastrophes and ex post shadow prices—How the value of the last fish in a lake is infinity and why we should not care (much)," Journal of Economic Behavior & Organization, Elsevier, vol. 132(PB), pages 153-160.
    13. Millner, Antony & Dietz, Simon, 2015. "Adaptation to climate change and economic growth in developing countries," LSE Research Online Documents on Economics 57863, London School of Economics and Political Science, LSE Library.
    14. Yongyang Cai & Kenneth L. Judd & Thomas S. Lontzek, 2013. "The Social Cost of Stochastic and Irreversible Climate Change," NBER Working Papers 18704, National Bureau of Economic Research, Inc.
    15. van der Ploeg, Frederick & ,, 2018. "Pricing Carbon Under Economic and Climactic Risks: Leading-Order Results from Asymptotic Analysis," CEPR Discussion Papers 12642, C.E.P.R. Discussion Papers.
    16. Richard Pierse, 2006. "Optimal control in nonlinear models: a generalised Gauss-Newton algorithm with analytic derivatives," School of Economics Discussion Papers 0906, School of Economics, University of Surrey.
    17. van den Bergh, J.C.J.M. & Botzen, W.J.W., 2015. "Monetary valuation of the social cost of CO2 emissions: A critical survey," Ecological Economics, Elsevier, vol. 114(C), pages 33-46.
    18. Li, Aijun & Du, Nan & Wei, Qian, 2014. "The cross-country implications of alternative climate policies," Energy Policy, Elsevier, vol. 72(C), pages 155-163.
    19. Strand, Jon, 2011. "Carbon offsets with endogenous environmental policy," Energy Economics, Elsevier, vol. 33(2), pages 371-378, March.
    20. Bosetti, Valentina & Carraro, Carlo & Duval, Romain & Tavoni, Massimo, 2011. "What should we expect from innovation? A model-based assessment of the environmental and mitigation cost implications of climate-related R&D," Energy Economics, Elsevier, vol. 33(6), pages 1313-1320.

    More about this item

    Keywords

    Environmental Economics and Policy;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:ags:aare11:100571. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    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.