Iran-Water Resources Research

Iran-Water Resources Research

Effect of Pricing System Reform on Water Productivity in Agricultural Sector from the Perspective of Sustainable Development (Case Study: Ajabshir Plain, Iran)

Document Type : Original Article

Authors
1 Assistant Professor, Economic, Social and Extension Research Department, East Azarbaijan Agricultural and Natural Recourses Research and Education Center, AREEO, Tabriz, Iran.
2 Professor, Faculty of Governance, University of Tehran, Tehran, Iran. Policy and Governance Laboratory, University of Tehran, Tehran, Iran.
3 M.Sc. Graduate of Civil Engineering-Environmental Engineering, Faculty of Civil Engineering, University of Tabriz, Tabriz, Iran.
4 Professor, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran.
5 Ph.D. Student in Civil-Environmental Engineering, Faculty of Civil Engineering, Islamic Azad University, Science and Research Branch, Tehran. And Researcher at the Environmental Research Institute of University of Tabriz, Tabriz, Iran.
6 Ph.D. Graduate of Economics, Faculty of Economics and Management, University of Tabriz, Tabriz, Iran.
Abstract
Water is one of the limiting factors for the development of the country's agricultural economy and one of the main goals of policymakers in the agricultural sector is to allocate this input among different agricultural activities in a correct way in order to improve its efficiency. Improving water efficiency can be a suitable criterion for identifying an appropriate water allocation policy in each region. This study utilized the Positive Mathematical Programming (PMP) technique to investigate the effects of various water-pricing policies in Ajabshir Plain. Data was collected through simple random sampling and face-to-face interviews with farmers during the agricultural year of 1399-1400 (Iranian calendar). Four scenarios were implemented regarding the price and quantity of water consumed for major agricultural products, such as wheat, barley, potato, and onion, as well as major horticultural products, including grape, apple, almond, and walnut. The results indicated that, for all selected products, increasing the water price led to a decrease in cultivation area and an increase in water productivity for the majority of the scenarios. Based on the Net Benefit per Drop (NBPD) index, walnut with 187,910 Rials per cubic meter of water, almond with 180,247 Rials per cubic meter of water, and potato with 83,827 Rials per cubic meter of water had the highest index values. According to this study, increasing the price of water and modifying cultivation patterns while considering the principles of sustainable development are effective strategies to enhance water productivity. Additionally, efficient water demand management can help to prevent waste.
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  • Receive Date 10 May 2024
  • Revise Date 23 July 2024
  • Accept Date 30 July 2024