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Economics of irrigation water management : a literature survey with focus on partial and general equilibrium models

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  • Dudu, Hasan
  • Chumi, Sinqobile

Abstract

Water policy is an important topic on the agenda of the international community, and efficiency and equity in the allocation of water have emerged as important factors to be considered. Water pricing can be used to mitigate both the quantity and quality dimensions of water scarcity. This paper reviews partial equilibrium models and general equilibrium models that are relevant to irrigation water management issues. The most widely discussed issues in these models are water markets and water pricing. The interrelationships between economic, cultural, social, and political aspects that are related to water policy make it difficult to provide a comprehensive policy analysis. General equilibrium models of irrigation water management allow incorporation of both the irrigation sector and the other sectors in the economy and analysis of policies affecting each of them and the interaction between them. In addition to being able to address sector and household specifications, production factors, time horizon, pricing policies, and institutions such as water markets, general equilibrium models allow the analysis of the impact of water policies on equity and poverty alleviation. The authors conclude that, although there has been a significant increase in efforts to analyzewater related problems, analytical and empirical research in the field is still deficient and more effort is needed to address them.

Suggested Citation

  • Dudu, Hasan & Chumi, Sinqobile, 2008. "Economics of irrigation water management : a literature survey with focus on partial and general equilibrium models," Policy Research Working Paper Series 4556, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4556
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    Citations

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    Cited by:

    1. Nicholas Kilimani, 2015. "Vulnerability to Climatic Variability: An Assessment of Drought Prevalence on Water Resources Availability and Implications for the Ugandan Economy," Working Papers 201562, University of Pretoria, Department of Economics.
    2. Jason F.L. Koopman & Onno Kuik & Richard S.J. Tol & Roy Brouwer, 2015. "Water Scarcity From Climate Change And Adaptation Response In An International River Basin Context," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 6(01), pages 1-22.
    3. Pérez-Blanco, C. D & Standardi, G., 2019. "Farm waters run deep: a coupled positive multi-attribute utility programming and computable general equilibrium model to assess the economy-wide impacts of water buyback," Agricultural Water Management, Elsevier, vol. 213(C), pages 336-351.
    4. Dinar, Ariel, 2012. "Economy-wide implications of direct and indirect policy interventions in the water sector: lessons from recent work and future research needs," Policy Research Working Paper Series 6068, The World Bank.
    5. Reddy, V. R., 2009. "Water pricing as a demand management option: potentials, problems and prospects," IWMI Books, Reports H042159, International Water Management Institute.
    6. Zvi Baum & Ruslana Rachel Palatnik & Iddo Kan & Mickey Rapaport-Rom, 2016. "Economic Impacts of Water Scarcity Under Diverse Water Salinities," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(01), pages 1-22, March.
    7. Franziska Schuenemann & James Thurlow & Stefan Meyer & Richard Robertson & Joao Rodrigues, 2018. "Evaluating irrigation investments in Malawi: economy†wide impacts under uncertainty and labor constraints," Agricultural Economics, International Association of Agricultural Economists, vol. 49(2), pages 237-250, March.
    8. Osman, Rehab & Ferrari, Emanuele & McDonald, Scott, 2015. "Water Quality Assessment SAM/CGE and Satellite Accounts Integrated Framework," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204291, Agricultural Economics Society.
    9. Calzadilla, Alvaro & Rehdanz, Katrin & Tol, Richard S.J., 2011. "The GTAP-W model: Accounting for water use in agriculture," Kiel Working Papers 1745, Kiel Institute for the World Economy (IfW).
    10. Kiprop, Jonah Kipsaat, 2015. "An Evaluation Of Farmers Willingness To Pay For Irrigation Water In Kerio Valley Basin Kenya," Research Theses 265580, Collaborative Masters Program in Agricultural and Applied Economics.
    11. Alvaro Calzadilla & Katrin Rehdanz & Richard Betts & Pete Falloon & Andy Wiltshire & Richard Tol, 2013. "Climate change impacts on global agriculture," Climatic Change, Springer, vol. 120(1), pages 357-374, September.
    12. Fitsum Assefa Adela & Joachim Aurbacher & Gumataw Kifle Abebe, 2019. "Small-scale irrigation scheme governance - poverty nexus: evidence from Ethiopia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(4), pages 897-913, August.
    13. Rehab Osman & Emanuele Ferrari & Scott McDonald, 2016. "Water Scarcity and Irrigation Efficiency in Egypt," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(04), pages 1-28, December.
    14. Nicholas Kilimani, 2014. "Water Taxation and the Double Dividend Hypothesis," Working Papers 201451, University of Pretoria, Department of Economics.
    15. Haqiqi, Iman & Hertel, Thomas W., 2016. "Decomposing Irrigation Water Use Changes in Equilibrium Models," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236185, Agricultural and Applied Economics Association.
    16. Jing Liu & Thomas Hertel & Farzad Taheripour, 2016. "Analyzing Future Water Scarcity in Computable General Equilibrium Models," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(04), pages 1-30, December.
    17. Osman, Rehab & Ferrari, Emanuele & McDonald, Scott, 2015. "Water Quality Assessment SAM/CGE and Satellite Accounts Integrated Framework-Egypt," 89th Annual Conference, April 13-15, 2015, Warwick University, Coventry, UK 204292, Agricultural Economics Society.
    18. Perez Blanco, C.D., 2018. "Waters run deep: A coupled Revealed Preference and CGE model to assess the economy-wide impacts of agricultural water buyback," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277028, International Association of Agricultural Economists.
    19. Tala Qtaishat, 2013. "Impact of Water Reallocation on the Economy in the Fertile Crescent," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(10), pages 3765-3774, August.
    20. Abu-Madi, Maher O., 2009. "Farm-level perspectives regarding irrigation water prices in the Tulkarm district, Palestine," Agricultural Water Management, Elsevier, vol. 96(9), pages 1344-1350, September.
    21. Kiprop, Jonah Kipsaat, 2015. "An Evaluation Of Farmers Willingness To Pay For Irrigation Water In Kerio Valley Basin Kenya," Research Theses 276443, Collaborative Masters Program in Agricultural and Applied Economics.
    22. Ouraich, Ismail & Tyner, Wallace E., 2011. "A CGE Analysis of Economy-wide Impacts of Climate Change on Agriculture in Morocco," 2011 Conference: Impacts of Climate Change on Agriculture, December 6-7, 2011, Rabat, Morocco 188121, Moroccan Association of Agricultural Economics (AMAEco).
    23. Freire-González, Jaume & Decker, Christopher & Hall, Jim W., 2017. "The Economic Impacts of Droughts: A Framework for Analysis," Ecological Economics, Elsevier, vol. 132(C), pages 196-204.

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