Estimation of the economic value of water for urban and agricultural use: A case study for Kowsar dam

Document Type : Research Paper

Authors

• Fatemeh Razzaghi ¹
• Rasoul Rajabpour ²
• Ghasem Layani ³
• Abbas Mirzaei ⁴

¹ Associate Professor, Water Engineering Department and Drought Research Center, School of Agriculture, Shiraz University, Shiraz, Iran

² Assistant Professor in Civil Engineering Group, Beyza Branch, Islamic Azad University, Beyza, Iran Branch, Islamic Azad University, Shiraz, Iran

³ Assistant Professor, Rural Development Department, Faculty of Agriculture, Shahrekord University, Shahrekord, Iran

⁴ Assistant Professor, Department of Agricultural Economics, Agricultural Sciences and Natural Resources University of Khuzestan, Mollasani, Iran

10.30495/jae.2022.22251.2057

Abstract

The information required in this study was collected through Regional Water Organization of Kogiluyeh and Boyerahmad province in 2014. The results show that the shadow value of water for agricultural and urban use was 5411 and 9643 Rials, respectively, which could also be considered as a maximum water price. Hence, the of agricultural water price should be higher than 1279 Rials (minimum price) and lower than 5411 Rials (maximum price), which will have beneficiary for water suppliers and no loss for water consumers. Results for urban consumption showed that the price per cubic meter of urban water should be higher than 2513 Rials to cover the full cost of water supply and lower than 9643 Rials as the economic value of urban consumers.

Keywords

• Economic value
• Opportunity cost
• Side cost
• Urban consumer
• Agricultural use

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