IDEAS home Printed from
   My bibliography  Save this paper

On the Relative Efficiency of Alternative Methods for Pricing Irrigation Water and their Implementation


  • Tsur, Yacov
  • Dinar, Ariel


The paper investigates efficiency performance of several irrigation water pricing methods, paying special attention to costs associated with implementing these methods. The volumetric, output, input, tiered and two-part tariff methods can achieve efficiency, though the type of efficiency (short or long run, first or second best) vary from one method to the other. Implementing these methods, however, entails expensive information collection and administrative activities. Per area pricing, which can not influence water input directly, is inefficient but is easier to implement and administer and require a modest amount of information. As the numerical example illustrates, differences • in implementation costs can render volumetric pricing inferior to per-area pricing.

Suggested Citation

  • Tsur, Yacov & Dinar, Ariel, 1996. "On the Relative Efficiency of Alternative Methods for Pricing Irrigation Water and their Implementation," Working Papers 232800, Hebrew University of Jerusalem, Center for Agricultural Economic Research.
  • Handle: RePEc:ags:huaewp:232800
    DOI: 10.22004/ag.econ.232800

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Laffont, Jean-Jacques & Tirole, Jean, 1986. "Using Cost Observation to Regulate Firms," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 614-641, June.
    2. George F. Rhodes & Rajan K. Sampath, 1988. "Efficiency, Equity and Cost Recovery Implications of Water Pricing and Allocation Schemes in Developing Countries," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 36(1), pages 103-117, March.
    3. Laffont, Jean-Jacques & Tirole, Jean, 1987. "Auctioning Incentive Contracts," Journal of Political Economy, University of Chicago Press, vol. 95(5), pages 921-937, October.
    4. Harry de Gorter & Yacov Tsur, 1991. "Explaining Price Policy Bias in Agriculture: The Calculus of Support-Maximizing Politicians," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(4), pages 1244-1254.
    5. Feldstein, Martin S, 1972. "Distributional Equity and the Optimal Structure of Public Prices," American Economic Review, American Economic Association, vol. 62(1), pages 32-36, March.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Crop Production/Industries;


    Access and download statistics


    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:huaewp:232800. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    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 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.