Estimating the economic value and possibility of forming a water market in arid areas (Case study: Pistachio employees in Ardakan)

Document Type : Research Paper

Authors

1 Master's student, Faculty of Agriculture Economics, Ardakan University, Ardakan, Iran

2 Associate Professor, Faculty of Agriculture Economics, Ardakan University, Ardakan, Iran

3 Assistant Professor, Faculty of Agricultural Economics, Ardakan University, Ardakan, Iran

10.29252/aridbiom.2021.14899.1817

Abstract

Due to the limited water resources used in the agricultural sector, water is considered an economic commodity and should be planned for consumption. The use of government policies can lead to the conservation of water resources to reallocate this natural resource. In this study, the economic value of agricultural water is calculated using the production function, and For this purpose, the required information from pistachio producers in Ardakan County was collected by completing 300 questionnaires using the multistage cluster sampling method in 2019-2020. After reviewing the results of various production functions, the generic quadratic production function was selected as the appropriate production function. The water elasticity was the highest among other outputs, equal to 0.54, which indicates that if the water supply increases by 1%, the production increases by 0.54%. The economic value of water per cube meter was calculated at 38790 tomans. The results of the contingent valuation method indicated that farmers will to pay for each cubic meter of water, a sufficient supply of water per cubic meter, and for one more cubic meter of water, 43.50, 113.64 and 26.458 tomans, respectively; they are also willing to receive 1215.30 tomans regardless of their cubic meter of consumption water. Therefore, there is no possibility of forming a market in this region.

Keywords

References

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Journal of Arid Biome
Volume 10, Issue 2
March 2021
Pages 113-128

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