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From Flow to Fortune? The Economic Impacts of Agricultural Dams

Author

Listed:
  • Hans R.A. Koster

    (Vrije Universiteit Amsterdam)

  • Saeed Tajrishy

    (Sharif University of Technology)

  • Jos van Ommeren

    (Vrije Universiteit Amsterdam)

  • Mohammad Vesal

    (Sharif University of Technology)

Abstract

We examine the economic effects of agricultural dams for Iran. To estimate the benefits of having a larger dam, we introduce a novel triple difference identification strategy using information on rainfed and irrigated land. The benefits for landowners and agricultural workers are captured by a range of measures (e.g. land rent, profit, agricultural output, wages). We demonstrate that increasing water volume of dams that are upstream creates substantial benefits for landowners, but not for agricultural workers. About half of agricultural dams are profitable. There are substantial economies of scale in volume of dams, but as the benefits of volume are more strongly diminishing, so benefit to cost ratios is smaller for larger dams.

Suggested Citation

  • Hans R.A. Koster & Saeed Tajrishy & Jos van Ommeren & Mohammad Vesal, 2024. "From Flow to Fortune? The Economic Impacts of Agricultural Dams," Working Papers 1719, Economic Research Forum, revised 20 Aug 2024.
    • Handle: RePEc:erg:wpaper:1719
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