Economics of Irrigation Water Management : A Literature Survey with Focus on Partial and General Equilibrium Models

Water policy is an important topic on the agenda of the international community, and efficiency and equity in the allocation of water have emerged as important factors to be considered. Water pricing can be used to mitigate both the quantity and qu...

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Bibliographic Details
Main Authors:	Dudu, Hasan, Chumi, Sinqobile
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCESS TO WATER AGGREGATE DEMAND AGRICULTURAL COMMUNITIES AGRICULTURAL OUTPUT AGRICULTURAL PRODUCTION ALLOCATION OF WATER ALLOCATION OF WATER RIGHTS ALLOCATION PROCESS ALLOCATION SYSTEM ARABLE LAND ASYMMETRIC INFORMATION AVAILABILITY OF WATER BASINS BOARD MEMBERS CALIBRATION CAPITAL MARKETS CATCHMENTS CLASSICAL ECONOMISTS CLIMATE CHANGE CLIMATIC CONDITIONS COLLECTIVE ACTIONS COMPARATIVE ADVANTAGE COMPARATIVE ANALYSIS COMPETITIVE MARKETS CONCEPTUAL FRAMEWORK CONSERVATION CONSUMER SURPLUS CONSUMPTION CHARGES CONTINGENT VALUATION CONTINGENT VALUATION METHOD COST OF WATER COST RECOVERY COVERING DAM CONSTRUCTION DECISION MAKING DEMAND FOR WATER DEVELOPED COUNTRIES DRAINAGE DRINKING WATER DROUGHT DUBLIN PRINCIPLE ECONOMIC ACTIVITY ECONOMIC ANALYSIS ECONOMIC CONSEQUENCES ECONOMIC DEVELOPMENT ECONOMIC FACTORS ECONOMIC GOODS ECONOMIC GROWTH ECONOMIC MODELS ECONOMICS ECONOMIES OF SCALE ECONOMISTS EFFICIENT USE OF WATER EFFICIENT WATER USE EMPIRICAL RESEARCH ENGINEERING ENVIRONMENTAL ENVIRONMENTAL ECONOMICS ENVIRONMENTAL ISSUES ENVIRONMENTAL POLICIES ENVIRONMENTAL POLICY ENVIRONMENTAL PROTECTION ENVIRONMENTAL TAX EQUILIBRIUM EXCESS WATER EXPENDITURES EXTERNALITIES FARMERS FARMING FARMS FERTILIZERS FINANCIAL RESOURCES FIXED COSTS FLOODS FOOD POLICY RESEARCH FOOD PRODUCTION GOVERNMENT FINANCING GROUND WATER GROUNDWATER GROUNDWATER RESOURCES HEDONIC PRICING HIGH WATER HOUSEHOLDS INCOME INCOME DISTRIBUTION INCOME INEQUALITY INTERMEDIATE INPUTS INTERNATIONAL WATER IRRIGATION IRRIGATION DEVELOPMENT IRRIGATION MANAGEMENT IRRIGATION SYSTEMS IRRIGATORS LAND DEGRADATION LEGISLATION LIVESTOCK PRODUCTS LOCAL AUTHORITIES LOCALITY LOGGING MAINTENANCE COSTS MARGINAL COST MARGINAL COSTS MARKET FOR WATER RIGHTS MARKET MECHANISM MARKET PRICES MATHEMATICAL PROGRAMMING MIDDLE EAST NATURAL MONOPOLIES NEGATIVE EXTERNALITIES NORTH AFRICA OPPORTUNITY COSTS PESTICIDES POLITICAL ECONOMY POSITIVE EXTERNALITIES POVERTY ALLEVIATION PRICE CHANGES PRICE OF WATER PRIOR APPROPRIATION PRODUCERS PRODUCTION FUNCTIONS PRODUCTION OUTPUT PRODUCTIVITY PROPERTY RIGHTS PROVISION OF SERVICES PROVISION OF WATER PUBLIC GOOD PUBLIC GOODS QUALITY OF WATER RECHARGE REGIONAL DEVELOPMENT RETURNS TO SCALE RIPARIAN RIPARIAN RIGHTS RIVER BASIN SALINITY SAVINGS SCARCITY OF WATER SHADOW PRICES SOUTH AMERICA STREAMS SUB-SAHARAN AFRICA SUPPLY OF WATER TAXATION TRANSACTION COSTS URBAN WATER VARIABLE COSTS WATER ALLOCATION WATER ALLOCATIONS WATER AUTHORITIES WATER AVAILABILITY WATER CHARGES WATER CONSUMPTION WATER CONSUMPTION CHARGES WATER DEMAND WATER DISTRIBUTION WATER DISTRICT WATER DISTRICTS WATER ECOSYSTEMS WATER FEES WATER LEGISLATION WATER MANAGEMENT WATER MANAGEMENT AGENCIES WATER MARKET WATER MARKETS WATER METERS WATER NEEDS WATER POLICIES WATER POLICY WATER POLLUTION WATER PRICES WATER PRICING WATER PRICING METHODS WATER PRODUCTION WATER PROJECTS WATER QUALITY WATER QUALITY PROBLEMS WATER REQUIREMENTS WATER RESOURCES WATER RIGHTS WATER SAVINGS WATER SCARCITY WATER SCARCITY PROBLEMS WATER SERVICES WATER STORAGE WATER SUPPLIERS WATER SUPPLY WATER SUPPLY SECURITY WATER SYSTEM WATER TRANSFER WATER TRANSFERS WATER USE WATER USER WATER USERS WATER UTILITIES WATER UTILITY WELFARE GAINS WILLINGNESS TO PAY
Online Access:	http://documents.worldbank.org/curated/en/2008/03/9075869/economics-irrigation-water-management-literature-survey-focus-partial-general-equilibrium-models http://hdl.handle.net/10986/6568

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Summary:	Water policy is an important topic on the agenda of the international community, and efficiency and equity in the allocation of water have emerged as important factors to be considered. Water pricing can be used to mitigate both the quantity and quality dimensions of water scarcity. This paper reviews partial equilibrium models and general equilibrium models that are relevant to irrigation water management issues. The most widely discussed issues in these models are water markets and water pricing. The interrelationships between economic, cultural, social, and political aspects that are related to water policy make it difficult to provide a comprehensive policy analysis. General equilibrium models of irrigation water management allow incorporation of both the irrigation sector and the other sectors in the economy and analysis of policies affecting each of them and the interaction between them. In addition to being able to address sector and household specifications, production factors, time horizon, pricing policies, and institutions such as water markets, general equilibrium models allow the analysis of the impact of water policies on equity and poverty alleviation. The authors conclude that, although there has been a significant increase in efforts to analyze water related problems, analytical and empirical research in the field is still deficient and more effort is needed to address them.

Economics of Irrigation Water Management : A Literature Survey with Focus on Partial and General Equilibrium Models

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