The Impact of Agricultural Water Pricing on Sustainability of Its Resources (Case Study: Kohgiluyeh and Boyerahmad Province)

Document Type : Research Article


1 Agricultural Economics Instructor, Payam Noor University, Iran and PhD student of Zabol University

2 Assistant Professor of Agricultural Economics, University of Zabol, Iran


The largest consumption of water is in agricultural and irrigation sectors, which accounts for about 70 percent of the world's total fresh water consumption, and because of rapid population growth, increased urbanization and climate change, water resources are scarce worldwide. In the present study, the potential impacts of water pricing on increasing efficiency, improving fairness and equity in water allocation and sustainability of surface and groundwater will be reviewed. The required data were collected through questionnaires and face-to-face interviews with farmers in different areas where farmers pay for irrigation costs in the area. The results showed that for productive farms, out of 139 farms, 14 farms were fully efficient in water use and the amount of extra water consumed for these farms was equal to zero. Of the 112 ranchers, only 19 ranchers had fully efficient water use and no additional water use and have not consumed excess water. The results of the Sustainability Index showed that if farmers and ranchers were more efficient in their water use and reduce water loss, their sustainability index would increase. The results of the VAR model indicate the equilibrium vector, which indicates the long-run equilibrium relationship between pricing policy and agricultural output. In other words, the results clearly indicate that water pricing policy has increased agricultural production in the studied units.


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