Nonmarket Economic Valuation for Irrigation Water Policy Decisions: Some Methodological Issues

Young, Robert A.

doi:10.1111/j.1936-704x.2005.mp131001004.x

Cited by 16 publications

(26 citation statements)

References 3 publications

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“…It accounts for the largest share of the Gross Domestic Product (GDP) of Ghana. However, its share of the GDP declined from over 44 percent in 1990 to about 37 percent in 2005(MOFA, 2007, to about 31 percent in 2009, and further down to about 30.2 percent in 2010 (MOFA, 2011;World Bank, 2012). One would have thought that the decline in agriculture's share of the GDP is due to increases in output from other sectors (industries and services), but that is not the case.…”

Section: Overview Of Impacts Of Rain-fed Agriculture On the Economy Omentioning

confidence: 99%

“…And because water is generally a nonmarket good, nonmarket valuation approaches are widely used to value irrigation water. In situations where market prices of goods and services are nonexistent, economic values of these goods and services can be obtained through the use of non-market valuation techniques (Bateman and Turner, 1992;Young, 2005). Valuation of irrigation water as a nonmarket good can be grouped into two broad techniques which are deductive and inductive, and each technique is identified based on the mathematical procedures and the types of data used in the analysis (Young, 2005).…”

Section: Alternative Approaches To Valuing Irrigation Watermentioning

confidence: 99%

“…The deductive technique employs the use of mathematical programming which incorporates crop production functions and forecasts of input and output prices in order to model the behavior of the profit-maximizing farmer (Young, 2005;Medellin-Azuara et al, 2010, Qureshi et al 2010. According to Young (2005), the deductive technique is a very flexible way of valuing irrigation water because it can fit into different policy options, economic and technological scenarios.…”

Section: Alternative Approaches To Valuing Irrigation Watermentioning

confidence: 99%

“…According to Young (2005), the deductive technique is a very flexible way of valuing irrigation water because it can fit into different policy options, economic and technological scenarios. However, its accuracy depends on the validity of the data and the suitability of the chosen model.…”

Section: Alternative Approaches To Valuing Irrigation Watermentioning

confidence: 99%

“…However, its accuracy depends on the validity of the data and the suitability of the chosen model. An example of the most commonly used deductive technique is the residual imputation method (Young, 2005;Qureshi et al 2010). The residual imputation approach requires that, the costs of all inputs except that of water are deducted from the total crop revenue resulting in the estimated value of water.…”

Section: Alternative Approaches To Valuing Irrigation Watermentioning

confidence: 99%

See 4 more Smart Citations

Estimating Farmers’ Willingness to Pay for Improved Irrigation: An Economic Study of the Bontanga Irrigation Scheme in Northern Ghana

Alhassan

2013

JAS

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Method (CVM) was used in this study and farmers were randomly selected for interviewing based on the location of their farms (upstream, middle, and downstream) within the scheme. The payment card elicitation format was used and the data were analyzed using Maximum Likelihood Estimation (MLE) procedure that is capable of accommodating the intervals in payment card data. The mean willingness to pay was found to be GHC 16.32 (US$ 8.50) per ha per year and the median was GHC 14.00 (US$ 7.29) per ha per year.Tobit regression model was also used to estimate the mean number of labor days farmers under the scheme would be willing to contribute to improve the project. The mean labor days was found to be 5.26 days per year and the median was 5.28 days per year.iii ACKNOWLEDGEMENTS Without the guidance of my advisor, co-advisor, committee members, help from friends, and support from my family and wife, this thesis would not have reached the completion stage.

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Section: Overview Of Impacts Of Rain-fed Agriculture On the Economy Omentioning

confidence: 99%

Section: Alternative Approaches To Valuing Irrigation Watermentioning

confidence: 99%

Section: Alternative Approaches To Valuing Irrigation Watermentioning

confidence: 99%

Section: Alternative Approaches To Valuing Irrigation Watermentioning

confidence: 99%

Section: Alternative Approaches To Valuing Irrigation Watermentioning

confidence: 99%

See 3 more Smart Citations

Estimating Farmers’ Willingness to Pay for Improved Irrigation: An Economic Study of the Bontanga Irrigation Scheme in Northern Ghana

Alhassan

2013

JAS

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Valuation of irrigation water in South-western Iran using a hedonic pricing model

Esmaeili

Shahsavari

2011

Appl Water Sci

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Population growth, improved socioeconomic conditions, increased demand for various types of water use, and a reduction in water supply has created more competition for scarce water supplies leveling many countries. Efficient allocation of water supplies between different economic sectors is therefore very important. Water valuation is a useful tool to determine water price. Water pricing can play a major part in improving water allocation by encouraging users to conserve scarce water resources, and promoting improvements in productivity. We used a hedonic pricing method to reveal the implicit value of irrigation water by analyzing agricultural land values in farms under the Doroodzan dam in South-western Iran. The method was applied to farms in which irrigation water came from wells and canals. The availability of irrigation water was one of the most important factors influencing land prices. The value of irrigation water in the farms investigated was estimated to be $0.046 per cubic meter. The estimated price for water was clearly higher than the price farmers currently pay for water in the area of study. Efficient water pricing could help the sustainability of the water resources. Farmers must therefore be informed of the real value of irrigation water used on their land.

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Economic value of water for irrigation in São Francisco River Basin, Brazil

Brito

Azevedo

2022

Appl Water Sci

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Agriculture is the economic activity which uses water the most in Brazil, particularly in São Francisco River Basin, where water withdrawals for irrigation granted by water authorities amount to 22.3 billion m3 per year, a number which is close to 81% of the total withdrawal. On the other hand, bulk water in Brazil is underpriced. Water charges for agricultural users neither reflect the economic value of water nor induce a rational and efficient use of water resources, two key concepts of the Brazilian water law. Even so, it is common for irrigators to complain about the water prices charged for their use of bulk water. To throw some light on the real impact of charging water in the agriculture sector, this article evaluates the economic value of irrigation water in the São Francisco River basin through the shadow price approach, calculated by using the Residual Value Method. The analysis was performed for the top ten major São Francisco River basin crops in water use terms, namely corn, soybean, mango, beans, coffee bean, banana, cotton, sugar cane, papaya and rice. Results for the 2019 harvests show that except for sugar cane, all water shadow prices were positive, notably mango, beans and papaya. This paper also evaluated water shadow prices interannual variation from 2014 to 2019 for six crops. Except for sugarcane, the other crops have been profitable most of the time in the last 6 years. A wide fluctuation in the shadow price of water was observed over these years due to variations in sales prices and costs of production.

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Nonmarket Economic Valuation for Irrigation Water Policy Decisions: Some Methodological Issues

Cited by 16 publications

References 3 publications

Estimating Farmers’ Willingness to Pay for Improved Irrigation: An Economic Study of the Bontanga Irrigation Scheme in Northern Ghana

Estimating Farmers’ Willingness to Pay for Improved Irrigation: An Economic Study of the Bontanga Irrigation Scheme in Northern Ghana

Valuation of irrigation water in South-western Iran using a hedonic pricing model

Economic value of water for irrigation in São Francisco River Basin, Brazil

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