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Irrigation Production Functions With Water-Capital Substitution

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  • Shani, Uri
  • Tsur, Yacov
  • Zemel, Amos
  • Zilberman, David

Abstract

The dynamics of biomass growth implies that the yield of irrigated crops depends, in addition to the total amount of water applied, on irrigation scheduling during the growing period. Advanced irrigation technologies relax constraints on irrigation rates and timing, allowing to better adjust irrigation scheduling to the varying needs of the plants along the growing period. Irrigation production functions, then, should include capital (or expenditures on irrigation equipment) in addition to aggregate water. We derive such functions and study their water-capital substitution properties. Implications for water demand and adoption of irrigation technologies are investigated. An empirical application confirms these properties.

Suggested Citation

  • Shani, Uri & Tsur, Yacov & Zemel, Amos & Zilberman, David, 2007. "Irrigation Production Functions With Water-Capital Substitution," Discussion Papers 7180, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    • Handle: RePEc:ags:huaedp:7180
    DOI: 10.22004/ag.econ.7180
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    1. is not listed on IDEAS
    2. Lichtenberg, Erik, "undated". "Optimal Investment in Precision Irrigation Systems: A Dynamic Intraseasonal Approach," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149920, Agricultural and Applied Economics Association.
    3. Rebecca Taylor & David Zilberman, 2017. "Diffusion of Drip Irrigation: The Case of California," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(1), pages 16-40.
    4. Huaicheng Li & Qing He & Chenming Liu & Wei Dai & Rilong Fei, 2022. "How to Maintain Sustainable Development of China’s Agriculture under the Restriction of Production Resources? Research with Respect to the Effect on Output of the Substitution of Input Factors," Energies, MDPI, vol. 15(10), pages 1-19, May.
    5. Foster, T. & Brozović, N., 2018. "Simulating Crop-Water Production Functions Using Crop Growth Models to Support Water Policy Assessments," Ecological Economics, Elsevier, vol. 152(C), pages 9-21.
    6. Bauman, Allison & Goemans, Christopher & Pritchett, James & Thilmany McFadden, Dawn, 2015. "Modeling Imperfectly Competitive Water Markets in the Western U.S," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 201448, Agricultural and Applied Economics Association.

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