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Pricing irrigation water : a literature survey

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  • Johansson, Robert C.

Abstract

As water scarcity and population pressures increase, more countries are adopting water pricing mechanisms, as their primary means of regulating the consumption of irrigation water. The way to allocate water efficiently is to"get the prices right", but how to accomplish this is open to debate. Water pricing methods are sensitive to the social, physical, institutional, and political setting. To assess the costs and benefits of a particular irrigation project, the pricing method must be tailored to local circumstances. The author's survey of the resource economics literature on irrigation services and pricing, will be useful for developing comprehensive guidelines for water policy practitioners. He synthesizes accumulated knowledge about the implementation, and performance of various water pricing methods used over the past two decades: volumetric pricing (marginal cost pricing), output and input pricing, per area pricing, tiered pricing, two part tariffs, and water markets. As water scarcity and population pressures increase, more countries are adopting water pricing mechanisms as their primary means of regulating the consumption of irrigation water. The way to allocate water efficiently is to"get the prices right", but how to accomplish this is open to debate. Water pricing methods are sensitive to the social, physical, institutional, and political setting. To assess the costs and benefits of a particular irrigation project, the pricing method must be tailored to local circumstances. The author's survey of the resource economics literature on irrigation services and pricing, will be useful for developing comprehensive guidelines for water policy practitioners. He synthesizes accumulated knowledge about the implementation, and performance of various water pricing methods used over the past two decades: volumetric pricing (marginal cost pricing), output and input pricing, per area pricing, tiered pricing, two part tariffs, and water markets.

Suggested Citation

  • Johansson, Robert C., 2000. "Pricing irrigation water : a literature survey," Policy Research Working Paper Series 2449, The World Bank.
  • Handle: RePEc:wbk:wbrwps:2449
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    Citations

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    Cited by:

    1. Molle, Francois & Berkoff, J., 2007. "Water pricing in irrigation: the lifetime of an idea," IWMI Books, Reports H040600, International Water Management Institute.
    2. Molle, Francois & Berkoff, Jeremy, 2007. "Water pricing in irrigation: the lifetime of an idea," Book Chapters,, International Water Management Institute.
    3. Barker, Randolph & Dawe, D. & Inocencio, A., 2003. "Economics of water productivity in managing water for agriculture," Book Chapters,, International Water Management Institute.
    4. de Fraiture, Charlotte & Perry, C. J., 2007. "Why is agricultural water demand unresponsive at low price ranges?," Book Chapters,, International Water Management Institute.
    5. World Bank, 2006. "Reengaging in Agricultural Water Management: Challenges and Options," World Bank Publications, The World Bank, number 6957, March.
    6. Khalil, Hamidreza Mirzaei & Esfandiari, Mahdi & Shahraki, Javad & Yaghoubi, Morteza, 2016. "Assessment of Water Use Efficiency Indices in Selected Plains of Fars Province, Iran," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 6(2), June.
    7. de Fraiture, Charlotte & Perry, C. J., 2007. "Why is agricultural water demand unresponsive at low price ranges?," IWMI Books, Reports H040602, International Water Management Institute.
    8. Wang, Hua & Xie, Jian & Li, Honglin, 2010. "Water pricing with household surveys: A study of acceptability and willingness to pay in Chongqing, China," China Economic Review, Elsevier, vol. 21(1), pages 136-149, March.
    9. Kumar, M. Dinesh & van Dam, J. C., 2008. "Improving water productivity in agriculture in developing economies: in search of new avenues," IWMI Conference Proceedings 245276, International Water Management Institute.
    10. Schrecongost, Alyse & Staatz, John M. & Diallo, Boubacar Cisse & Yade, Mbaye, 2004. "Water Pricing as a Tool for Integrated Water Resource Management: A Synthesis of Key Issues for Rural West Africa," Food Security International Development Policy Syntheses 11272, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    11. Schulze, Katrin & Spreer, Wolfram & Keil, Alwin & Ongprasert, Somchai & Müller, Joachim, 2013. "Mango (Mangifera indica L. cv. Nam Dokmai) production in Northern Thailand—Costs and returns under extreme weather conditions and different irrigation treatments," Agricultural Water Management, Elsevier, vol. 126(C), pages 46-55.
    12. Tyagi, Ashish & Shortle, James S., 2016. "Modeling Endogenous Change in Water Allocation Mechanisms: A Non-Cooperative Bargaining Approach," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235571, Agricultural and Applied Economics Association.
    13. Barker, R. & Dawe, D. & Inocencio, A., 2003. "Economics of water productivity in managing water for agriculture," IWMI Books, Reports H032633, International Water Management Institute.
    14. He, Lixia & Tyner, Wallace E. & Doukkali, Rachid & Siam, Gamal, 2005. "Strategic Policy Options to Improve Irrigation Water Allocation Efficiency: Analysis on Egypt and Morocco," 2005 Annual meeting, July 24-27, Providence, RI 19467, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Sidibe, Yoro & Williams, Timothy O., 2015. "Valuation of water in large-scale agricultural land investments in Mali: Efficiency and equity trade-offs," 2015 Conference, August 9-14, 2015, Milan, Italy 212235, International Association of Agricultural Economists.
    16. Mabel Tidball & Jean-Philippe Terreaux, 2008. "Information revelation through irrigation water pricing using volume reservations," Working Papers 08-14, LAMETA, Universtiy of Montpellier, revised Sep 2008.
    17. Klein, Kurt K. & Nicol, Lorraine A. & Le Roy, Danny G., 2004. "Challenges for Water Researchers in Alberta in a Climate of Policy Uncertainty," CAFRI: Current Agriculture, Food and Resource Issues, Canadian Agricultural Economics Society, issue 5, pages 1-17, May.

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