Potential Effects of Agricultural Water Pricing and Quota on Productivity and Use of Agricultural Inputs in Kohgiluyeh

Document Type : Research Paper

Authors

1 Department of Agricultural Economics, Payame Noor University, Tehran, Iran.

2 Associate Professor, Department of Agricultural Economics, Zabol University

3 Assistant Professor, Department of Agricultural Economics, Zabol University.

Abstract

Water is an essential input for agricultural activities and is scarce in arid areas. Therefore, sustainable use of limited water resources in agriculture is of great importance. In the present study, water pricing and quotation methods in agriculture and horticulture sectors of Kohgiluyeh and Boyer-Ahmad Provinces were studied as tools for water resources management. For this purpose, the positive mathematical planning (PMP) approach was used and the cultivation pattern in the area was simulated. Then, the effect of water pricing and quotation policies on the pattern of cultivation was examined in the form of 7 scenarios including: (no change in water quota or price), (no change in quota +10%, 20% or 30% higher price for water), and (10%, 20%, or 30% lower quota with no change in water price). The results showed that in all scenarios, the area under cultivation and water consumption of crops would decrease and the area under cultivation of rainfed crops would increase. For example, under 30% reduction in water quota, wheat cultivation area decreased from 28530 ha to 23004 ha, with similar trends for irrigated barley and maize. In addition, the results indicate a decrease in the gross yield of agricultural activities, which, in turn, would lead to a decrease in the level of agricultural activities in the region, with social and economic consequences on the agricultural conditions of the region. With the intensification of water restrictions (increasing prices and reducing quotas), the amount of water consumed for the province''s gardens will also decrease. According to the results, reducing the water supply and increasing its price has a great impact on the number of livestock and the amount of water used in livestock. In general, it seems that increasing water prices, reducing the water quota of units and also the combination of these two scenarios can reduce water loss in agricultural activities.

Keywords

References

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Journal of Water Research in Agriculture
Volume 35, Issue 1
June 2021
Pages 89-106

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