Introduction: Among the critically forbidden plains of Tehran province, Varamin plain is more critical. The agricultural sector in this plain consumes more than 80 percent of the underground water resources. In the Varamin plain, most farmers tend to use traditional irrigation methods such as flood and leaky irrigation to irrigate their lands. According to economists, the reason for the low efficiency of irrigation and the loss of water resources in this sector, which has led to the current situation of the Varamin plain, is the low price of water compared to the other inputs. Therefore, it is essential to review the current method of water pricing and determine the reasonable water price in this plain. So, this study was conducted to answer these questions: What is the economic value of water in the Varanin plain? How can a change in water price affect the crop pattern and the farmers' profit? What are the responses of farmers to changing the price of this input? How much can a rise in water prices save the water input? Answering these questions can be a step towards modifying the pattern of water consumption in the Varamin plain. Therefore, this study aimed at calculating the economic value of the water and then, analyzing the impact of an increase in water price on farmers' reactions and the crop pattern in the Varamin plain. Materials and Methods: The economic value of water was estimated through two methods: calculating the residual value by subtracting the cost of all inputs except water from the income for each product and evaluating the shadow price of water using Positive Mathematical Programming (PMP). Then, the impacts of water price changes on the crop pattern, water consumption, and farmers' profits were estimated using PMP model. The water demand function and water elasticity also were estimated by a stepwise increase of 5 percent in the water price in the third stage of the PMP model. The required data was collected by completing 120 questionnaires using the stratified sampling method and proportional allocation from the farmers of three cities in the Varamin plain including Varamin, Pishva and Pakdasht in the cropping year of 2019-2020. The data were collected for six crops (wheat, barley, corn, alfalfa, cucumber, and tomato), including the quantity and price of production and the quantity and price of inputs (land, seed, fertilizers, pesticide, water, labor, and machinery) in the concerned cities. Conclusions: The weighted average of each cubic meter of water using the residual value as well as the shadow price methods were equal to 35769.8 and 23917.6 IRI rials, respectively. This result shows a big difference between the economic value and the price paid by farmers, which is between seven to ten-folds. The results of estimating the demand function of water showed that the water demand elasticity was equal to zero up to the price of 27386.1 IRI rials. At higher prices, the farmers responded to the increase in water price, and the elasticity of water demand was equal to -2.15 on average. Based on the results, the shadow price of water obtained from PMP model (23917.6 IRI rials) does not affect the crop pattern and the water consumption, although it reduces farmers' profit by 48.66 percent. The economic price of water obtained using residual value method (23917.6 IRI rials) causes a decrease of 36.84 percent in the cultivated area, a 25.24 percent reduction in the water consumption, and a 74.59 percent reduction in the profit. Most of the change in the cultivated area was related to barley. Although, this crop consumes less water per hectare than other crops, the share of water cost per kilogram of barley is higher than the other products. After barley, the cultivated area of wheat, alfalfa, corn, cucumber, and tomato would respectively decrease for the same reason. Results and Discussion: The results showed that applying the policy of increasing the price of water up to its economic value led to a decrease in farmers' profits and might reduce their motivation in production. In addition, applying this policy suddenly can lead to adverse reactions such as resistance and avoidance of paying this water price, social tensions, and public discontent. Therefore, gradually adjusting and increasing water prices for a long time was suggested. By adopting this policy, gradually, agricultural water consumption would decrease, and the cropping pattern would shift toward water-saving crops. |
- Abbasi, F., Sohrab, F. & Abbasi, N. (2017). Evaluation of irrigation efficiencies in Iran. Irrigation and Drainage Structures Engineering Research, 17(67): 113-120. DOI: 10.22092/aridse.2017.109617. [In Persian]
- Abdelhafidh, H., Brahim, M.B., Bacha, A. & Fouzai, A. (2022). Farmers’ willingness to pay for irrigation water: empirical study of public irrigated area in a context of groundwater depletion. Emirates Journal of Food and Agriculture. 34(1): 44-50. DOI: 10.9755/ejfa. 2022. V 34.i1.2805.
- Ansari, V., & Mirzaee, H. (2015). The effect of agricultural product pricing policies on the economic value of water (case study: sugar beet farming in the city of Neishabour). Iranian Journal of Agricultural Economics and Development Research, 46(3): 609-621. DOI: 10.22059/ijaedr.2015.55544. [In Persian]
- Berbel, J., Mesa-Jurado, M.A. & Pistón, J.M. (2011). Value of irrigation water in Guadalquivir basin (Spain) by residual value method. Water Resources Management, 25(6): 1565-1579. DOI: 10.1007/s11269-010-9761-2.
- Cochran, W.G. (1977). Sampling techniques. New York. John Wiley and Sons.
- Cortignani, R., & Severini, S. (2009). Modeling farm-level adoption of deficit irrigation using Positive Mathematical Programming. Agricultural Water Management, 96(12): 1785-1791. DOI: 10.1016/j.agwat.2009.07.016.
- Dehghani, A., Amirtaimoori, S. & Zare Mehrjerdi, M.R. (2020). Price and non-price policies effects of irrigation water on cropping pattern and gross profit of farmers in Shahdad County. Irrigation and Water Engineering, 10(4): 258-271. DOI: 10.22125/iwe.2020.110095. [In Persian]
- Ghabaei, M., & Mousaei, M. (2022). Estimating economic value of optimal water consumption in agriculture (case study of Gachsaran gardens). Water Resources Engineering, 15(52): 57-72. DOI: 10.30495/wej.2022.27984.2314. [In Persian]
- Ghaderzadeh, H., Shayanmehr, S. & Hezareh, R. (2017). Investigating the effects of pricing policy of water irrigation on cropping pattern and water consumption productivity (case study: Ghorveh-Dehgolan Plain at Kurdistan province). Iranian Journal of Irrigation and Drainage, 11(4): 609-617. [In Persian]
- Golzari, Z., Eshraghi, F. & Keramatzadeh, A. (2017). Estimating the economic value of water in wheat production in Gorgan County. Journal of Water Research in Agriculture, 30(4): 457-466. DOI: 10.22092/jwra.2017.109008. [In Persian]
- Hassanli, M., Afrasiab, P., Sabouhi, M. & Ebrahimian, H. (2020). Groundwater valuation using residual method and considering water salinity in Varamin County. Journal of Water Research in Agriculture, 34(2): 301-315. DOI: 10.22092/jwra.2020.122265. [In Persian]
- Hassanvand, M., Joolaei, R., Keramatzadeh, A. & Eshraghi, F. (2018). Application of positive mathematical programming model to analyze the effect policy of changes in price and quantity of agricultural water on cropping pattern of crops in Neka County. Agricultural Economics, 12(3): 71-93. DOI: 10.22034/iaes.2018.26446.1130. [In Persian]
- Hosseinzad, J. (2004), Determination of appropriate water pricing method in agriculture (case study of Alavian dam and network). PhD Dissertation, University of Tehran, Iran. [In Persian]
- Huang, Q., Rozelle, S., Howitt, R.E., Wang, J. & Huang, J. (2010). Irrigation water demand and implications for water pricing policy in rural China. Environment and Development Economics, 15: 293-319. DOI: 10.1017/S1355770X10000070.
- IWRMC (2019). Forbidden plains of Iran. Tehran: Iran Water Resources Management Company (IWRMC). Available at https://www.danab.ir/wp-content/uploads/2020/09/total97.pdf. [In Persian]
- IWRMC (2018). Studies on updating the balance of water resources of the study areas of the Namak Lake basin, the report of the water balance of the study area of Varamin (4134). Tehran: Iran Water Resources Management Company (IWRMC). [In Persian]
- Jalilpiran, H. (2012). The role of water pricing in the agricultural sector on the balance of water resources. Economic Journal, 12(2): 119-128. [In Persian]
- Khalilian, S., & Rahmati, P. (2017). Analysis of the effects of price increase and water supply reduction on input consumption and sustainability indicators of Qazvin Plain farms. Seventh Global Conference on Sustainable Agriculture and Natural Resources, Tehran. [In Persian]
- Medellín-Azuara, J., Howitt, R. & Harou, J. (2012). Predicting farmer responses to water pricing, rationing and subsidies assuming profit maximizing investment in irrigation technology. Agricultural Water Management, 108: 73-82. DOI: 10.1016/j.agwat.2011.12.017.
- Medellín-Azuara, J., Howitt, R.E., Waller-Barrera, C., Mendoza-Espinosa, L.G., Lund, J.R. & Taylor, J.E. (2009). A calibrated agricultural water demand model for three regions in northern Baja California. Agrociencia, 43(2): 83-96.
- Mesa-Jurado, M.A., Martin-Ortega, J., Ruto, E. & Berbel, J. (2012). The economic value of guaranteed water supply for irrigation under scarcity conditions. Agricultural Water Management, 113: 10-18. DOI: 10.1016/j.agwat.2012.06.009.
- Mirzaee, H. (2014). Study of optimal water allocation in the subsectors of agricultural sector (case study of Neyshabur Plain). Master Thesis of Agricultural Economics, Faculty of Agricultural Economics, University of Tehran. [In Persian]
- Mohammadjani, I., & Yazdanian, N. (2015). The analysis of water crisis conjecture in Iran and the exigent measures for its management. Journal of Ravand, 21(65-66): 117-144. [In Persian]
- Mohtashami, T. (2011). The projection of the supply and demand gap of Iran's main agricultural products. PhD Dissertation, University of Tehran, Iran. [In Persian]
- Mousapour Siahjel, Sh., Hosseini, M., Ahmadpour Borazjani, M. & Norouzian, M. (2021). The effect of irrigation water subsidy reduction policy on farmer's water demand and area under cultivation of agricultural products. Journal of Water Management in Agriculture, 8(1): 103-114. [In Persian]
- Mousavi, H., Ranjbaran, F. & Najafi Alamdarloo, H. (2019). Determination of economic value of agricultural water in greenhouse cultivation of Qazvin Plain. Journal of Soil and Plant Interactions (Isfahan University of Technology), 10(2): 55-68. DOI: 10.29252/ejgcst.10.2.55. [In Persian]
- Mu, L., Wang, Y. & Xue, B. (2023). Does the dynamic adjustment of agricultural water prices drive variation of the agricultural production? Research Square. DOI: 10.21203/rs.3.rs-2470829/v1.
- Mu, L., Wang, C., Xue, B., Wang, H. & Li, S. (2019). Assessing the impact of water price reform on farmers’ willingness to pay for agricultural water in northwest China. Journal of Cleaner Production, 234: 1072-1081. DOI: 10.1016/j.jclepro.2019.06.269.
- Nabizadeh Zolpirani, M., Amirnejad, H. & Shahnazari, A. (2018). Estimating the cost of water and the economic value of water in the farmlands covered by man-made ponds: a case study of the Alborz project area in Iran. Iranian Association of Agricultural Economics, International Journal of Agricultural Management and Development (IJAMAD), 9(1): 35-46. DOI: 10.22004/ag.econ.292519.
- Oulmane, A., Frija, A. & Brabez, F. (2019). Modelling farmers' responses to irrigation water policies in Algeria: an economic assessment of volumetric irrigation prices and quotas in the Jijel-Taher irrigated perimeter. Irrigation and Drainage, 68(3): 507-519. DOI: 10.1002/ird.2327.
- Paris, Q., & Howitt, R.E. (1998). An analysis of ill‐posed production problems using maximum entropy. American Journal of Agricultural Economics, 80(1): 124-138. DOI: 2307/3180275.
- Rodrigues, G.C., da Silva, F.G. & Coelho, J.C. (2021). Determining farmers’ willingness to pay for irrigation water in the Alentejo region (southern Portugal) by the residual value method. Agronomy, 11(1): 142-156. DOI: 10.3390/agronomy11010142.
- Spielman, D., Ekboir, J. & Davis, K. (2009). The art and science of innovation systems inquiry: applications to Sub-Saharan African agriculture. Technology in Society. 31(4): 399-405. DOI: 10.1016/j.techsoc.2009.10.004.
- Tahamipour, M., Kalashami, M. & Chizari, A. (2015). Irrigation water pricing in Iran: the gap between theory and practice. International Journal of Agricultural Management and Development (IJAMAD), 5(2): 109-116. DOI: 10.5455/ijamd.168344.
- Tahamipour, Z., & Yazdani, S. (2017). The role of economic instruments in IWRM: the case study of irrigation water pricing in western basins of Iran. Iranian Journal of Agricultural Economics and Development Research, 47(3): 545-556. DOI: 10.22059/ijaedr.2016.60223. [In Persian]
- Tazzori, N., Banihabib, M.E., Hashemi Shahdani, S.M. & Hassani, Y. (2021). Determination of agricultural water prices based on sustainable development criteria, case study of Qazvin irrigation network. Iranian Journal of Ecohydrology, 8(2): 461-473. DOI: 22059/ije.2021.317877.1462. [In Persian]
- Young, R.A., & Loomis, J.B. (2014). Determining the economic value of water: concepts and methods. New York: Routledge. DOI: 10.4324/9780203784112.
- Zare, S., Mohammadi, H., Sabouhi, M., Ahmadpour, M. & Mohaddes Hosseini, S.A. (2019). The effect of groundwater management policies under balance condition on sugar beet cultivation area in Razavi Khorasan province. Journal of Sugar Beet, 35(1): 103-119. DOI: 10.22092/jsb.2019.121201.1183. [In Persian]
|