Policy Options to Improve Water Allocation Efficiency: Analysis on Egypt and Morocco

He, Lixia; Tyner, Wallace E.; Doukkali, Rachid; Siam, Gamal

doi:10.1080/02508060608691935

Cited by 23 publications

(15 citation statements)

References 16 publications

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“…Limitations of development water resources, apparently poor management and large losses of water in Iranian irrigated areas compel the implementation of demand water policies. Such demand policies consist in the main of the public reallocation of water resources, water pricing and alternative irrigation policies such as water complementary input factor taxes and output taxes [6,11] . Using empirical evidence from Iran to assess the effectiveness of water pricing in curtailing demand, Perry [2,13,17,23] have estimated a 10, 3.5, 3 and 10 fold increase for irrigation water prices in different regions, respectively.…”

Section: Introductionmentioning

confidence: 99%

Analyzing the Effects of Water and Agriculture Policy Strategies: An Iranian experience

Moghaddasi¹

2009

American J. of Agricultural and Biological Sciences

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Problem statement: Because of growing demand for water resources, increasing cost of supplying water and overdraft of underground waters, economists suggest water pricing policy to improve water allocation efficiency in Iran. While due to political risk, economic and cultural concerns, government tends to reject that advice. This study addressed questions of what policy alternatives to water pricing could be used to improve irrigation water allocation efficiency. Approach: Three policy options include water pricing, water complementary input factor taxes and output taxes were examined. In order to minimize the problems of bias produced by fully aggregated models, sample farms were classified into homogeneous groups of farmers by means of clustering technique. The analysis carried out by means of Positive Mathematical Programming (PMP), utilizing quadratic cost functions. Results: Results showed that effects of alternative policies were strongly dependent on group of farmers and that would create widespread effects on policy goals across clusters. The results also indicated that water pricing policy worked well in reducing the irrigation water use when the water price level was high and will have, in most cases, higher effects than other policy scenarios. Conclusion: Low level of input taxation wasn't a good driver in decreasing irrigation water demand and keeping the welfare level. Water pricing and output tax policies were better suited and effective than water complementary input factor taxation but both input factor tax and output tax policy at certain rates could be alternatives to water pricing policy. Water pricing policy had noticeable effects on social and environmental goals, while input and output taxes had small effects on that goals.

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Section: Introductionmentioning

confidence: 99%

Analyzing the Effects of Water and Agriculture Policy Strategies: An Iranian experience

Moghaddasi¹

2009

American J. of Agricultural and Biological Sciences

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“…As the objective of this paper is to estimate the impact of irrigation water pricing policy, assuming that the farmers in the region take rational production decisions, an optimization model, i.e. a PMP model, was adopted as a popular model for policy impact analysis at farm, regional and national level (He et al, 2005;Medellín-Azuara et al, 2009;Moghaddasi et al, 2009). The standard PMP model uses a constant elasticity of substitution production function and a quadratic cost function (Howitt, 1995).…”

Section: Methodsmentioning

confidence: 99%

“…In this sense, an increase in irrigation water price can promote the adoption of water-saving technologies and improve the efficiency of water use (IFPRI, 2002;Yang et al, 2004;Molle & Berkoff, 2007;Huang et al, 2008). However, others have argued that water demand is less elastic in the agricultural sector, although it varies considerably based on irrigation season and region (Lohmar et al, 2003;Noeme & Fragoso, 2004;Easter & Liu, 2005;He et al, 2005;Velázquez et al, 2007;Liao et al, 2008). Apart from pricing, Webber et al (2008) and Yang et al (2002) found that the basic foundation of the irrigation use inefficiency is associated mainly with how the water is delivered to farmers and the water resources administration system itself.…”

Section: Introductionmentioning

confidence: 96%

Irrigation water pricing policy for water demand and environmental management: a case study in the Weihe River basin

2013

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Irrigated agricultural production is the backbone of the Chinese agricultural sector, but the increasing demand for irrigation water, its inefficient utilization and overuse of chemical inputs, accompanied by the short supply of water resources have endangered the nation's agricultural and environmental sustainability. The Chinese government has proposed a water pricing policy with the expectation of improving the efficiency of utilizing irrigation water and fertilizer, to mitigate these problems. With the main objective of this paper being to assess the impact of this policy on water demand and environmental sustainability, a positive mathematical programming model was adopted to simulate different irrigation water pricing scenarios based on farm-level primary data from three irrigation districts along the Weihe River basin. The main parameter for assessing water demand was the change in total water consumption relative to the base year, while change in fertilizer consumption and water demand was determined to evaluate the impact of pricing policy on environment sustainability. According to the results, irrigation water demand and fertilizer consumption were mostly price inelastic to water pricing. This implies that water pricing policy can have only a minor role in regulating the water demand and environment in the region even when the base-year water price is doubled.

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“…The international community has declared water to be a human right. All these are strong factors that inhibit pricing water: it is a local resource, costly to move, and best used in regions with water availability (He, Tyner, Doukkali, & SIAM, 2006;Holmgren & Berggren, 2014;Molle, 2008). Finally, water is deeply connected with cultural factors and traditionally has been free throughout human history; hence it never had to be taken into account for pricing food products (Allan, 2013).…”

Section: Externalities and Public Goods -The Role Of The Public Sectormentioning

confidence: 99%

Financial challenges of the nexus: pathways for investment in water, energy and agriculture in the Arab world

Keulertz

Woertz

2015

International Journal of Water Resources Development

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The Water-Energy -Food (WEF) nexus is a development challenge in the Arab world, particularly in the 'core nexus countries' with low to mid-incomes in which limited water endowments permit agricultural production, such as Egypt, Morocco, Tunisia, Lebanon, Algeria, Sudan and Jordan. The WEF nexus is often conceptualized in mere technocratic terms, yet politics matter in the implementation of projects that address it. Internalizing hydrological externalities or leaving them as they are and financing them as a public good requires states whose capacities have been reduced as a result of neoliberal reform. The article explores five different pathways of how Arab countries could finance green growth projects ranging from regional financial markets to concessionary loans by funds from oil rich Gulf countries.

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Policy Options to Improve Water Allocation Efficiency: Analysis on Egypt and Morocco

Cited by 23 publications

References 16 publications

Analyzing the Effects of Water and Agriculture Policy Strategies: An Iranian experience

Analyzing the Effects of Water and Agriculture Policy Strategies: An Iranian experience

Irrigation water pricing policy for water demand and environmental management: a case study in the Weihe River basin

Financial challenges of the nexus: pathways for investment in water, energy and agriculture in the Arab world

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