Establishment of a Structural Institution of the Local Water Market in the Irrigation Network of Tehran Province with Statewide Agricultural Production Model Approach

Parhizkari, Abozar; Yavari, Gholamreza; Mahmoodi, Abolfazl; Bakhshi Khaniki, Gholamreza

doi:10.30495/jae.2023.28453.2260

Establishment of a Structural Institution of the Local Water Market in the Irrigation Network of Tehran Province with Statewide Agricultural Production Model Approach

Document Type : Research Paper

Authors

¹ PHD in Agricultural Economics, Payam Noor University, Tehran, Iran

² Associate Professor of Agricultural Economics, Payam Noor University, Tehran, Iran

³ Professor of Agricultural Science (Biotechnology) Payam Noor University, Tehran, Iran

10.30495/jae.2023.28453.2260

Abstract

Introduction: Examining the potential effects of this event, which has received more and more attention from the international community, is an important step in the development of agricultural activities in Tehran province.

Methods: In the present study, using the approach of state or regional agricultural production model (SWAP), the economic behavior of Tehran farmers after participating in the structural institution of the local water market was modeled.

Findings: The results showed that with the establishment of local water market in Tehran province, in addition to sustainable balancing of water resources, it is possible to develop the acreage of irrigated products, albeit profitable in the cropping pattern of less water regions (Shahrerey and Varamin plains) and by balancing farmers’ gross profit, the negative consequences of the hydrological drought phenomenon are reduced to about 35.3% compared to the base period.

Conclusion: Establishing a local water market as a structural institution with private property rights in Tehran province can transfer surplus water resources in the study areas of southwestern Tehran province (regions C, D and E).

Keywords

References

1. Abolhasani L, Shahnooshi N, Rahnema A, Aazame Rahmati A, Heyran F. The role of water market formation in the use of water resources in agriculture (Case study of Mashhad plain). Journal of Agricultural Economics and Development, 2019; 106 (27): 1-29.

[10.30490/AEAD.2022.353656.1309]

2. Ahmadi A, Zolfagharipoor M, Nikoee A, Darali M Y. Economic evaluation of the implementation of the technical context of the agricultural water market, a case study: part of the Mahyar irrigation network. Iranian Journal of Water Resources Research, 2016; 12 (3): 49-35.

[https://www.iwrr.ir/article_16518.html?lang=en]

3. Barikani A, Khalilian S. Dynamic groundwater aquifer management in agriculture: A case study of Qazvin plain. 4th Iranian Water Resources Management Conference, Amir Kabir University of Technology, Tehran; 2011.

[https://civilica.com/doc/117109/]

4. Droitsch D, Robinson B. Share the water: building a secure water future for Alberta, published jointly by can more: water matters society of Alberta, and Vancouver: eco justice, AB; 2009. [www.water-matters.org/docs/share-the-water.pdf.]

5. Garrido S. Governing scarcity. Water markets, equity and efficiency in pre-1950s eastern Spain. International Journal of the Commons, 2011; 5: 513-534.

[https://www.jstor.org/stable/26523085]

6. Gomez-Limon J A, Martinez Y. Multi-criteria modeling of irrigation water market at basin level: A Spanish case study, European journal of operational research, 2006; 173(1): 313-336.

[https://doi.org/10.1016/j.ejor.2004.12.009]

7. Grafton R Q, Horne J, Wheeler S A. On the marketization of water: evidence from the Murray-Darling basin, Australia. Water Recourse Management, 2016; 30(3): 913-926.

[https://link.springer.com/article/10.1007/s11269-015-1199-0]

8. Grafton R Q, Libecap G, McGlennon S, Landry C, Brien B. An integrated assessment of water markets: a cross-country comparison. Rev. Environ. Econ. Policy, 2011; 5(2): 219-239.

[https://www.journals.uchicago.edu/doi/abs/10.1093/reep/rer002?journalCode=reep]

9. Graveline C. Economic calibrated models for water allocation in agricultural production: A review. Environmental Modelling and Software, 2016; 81: 12-25.

[https://doi.org/10.1016/j.envsoft.2016.03.004]

10. Howe C W, Schurmeier D R, Shaw W D. Innovative approaches to water allocation: the potential for water markets. Water resources research, 1986; 22(4): 439-445.

[https://doi.org/10.1029/WR022i004p00439]

11. Howitt R E, Medellin-Azuara J, MacEwan D, Lund R. Calibrating disaggregates economic models of agricultural production and water management. Science of the Environmental Modeling and Software, 2012; 38: 244-258.

[https://doi.org/10.1016/j.envsoft.2012.06.013]

12. Howitt R E, MacEwan D, Medellin-Azuara J, Lund R, Sumner D. Economic analysis of the 2015 drought for California agriculture, UC Davis Center for Watershed Sciences, ERA Economics, UC Agricultural Issues Center, University of California, 2015; 1-31.

[B2n.ir/n01971]

13. Kiani GH. The role of market in optimal water resources allocation and efficacious factors influencing the efficiency of water markets. Journal of Water and Sustainable Development, 2013; 3(1): 93-102.

[https://jwsd.um.ac.ir/article_27805.html?lang=en]

14. Laura G F, Medellin-Azuarac J, Tanseyd M, Young Ch, Purkeyb D, Howitt R. Integrating complex economic and hydrologic planning models: An application for drought under climate change analysis. Water Resources and Economics, 2016; 1-13.

[//dx.doi.org/10.1016/j. wre.2016.10.002]

15. Li H, Zhao J. Rebound Effect of Irrigation Technologies? The Role of Water Rights. Author. 2016 Annual Meeting, July 31 August 2, 2016, Boston, Massachusetts Agricultural and Applied Economics Association, 216; 1-27.

[https://ideas.repec.org/p/ags/aaea16/235966.html]

16. Liang T G. Trading and economic efficiency in selected Victorian water markets in Australia. Thesis presented for the degree of Doctor of Philosophy, Murdoch University, 2016; 1-21.

[B2n.ir/a65220]

17. Mahmoodi A, Parhizkari A. Economic modeling of agricultural water resources management in Tehran province with emphasis on the role of water market. Journal of Economic Modeling, 2016; 35 (3): 121-139.

[https://www.sid.ir/paper/176301/en]

18. Medellan-Azuara J, Harou J J, Howitt R.E. Estimating economic value of agricultural water under changing conditions and the effects of spatial aggregation. Science of the Total Environment, 2010; 408(3): 5639- 5648.

[https://doi.org/10.1016/j.scitotenv.2009.08.013]

19. Nazari M. Water market in theory and practice: market failure and public policy. Journal of Water and Sustainable Development, 2016; 3(1): 103-114.

[https://doi.org/10.22067/jwsd.v3i1.59448]

20. Parhizkari A, Badie Barzin H, Qamri A, Qafari Z. The effects of forming regional water markets on balancing the supply and demand of irrigation water in Sistan region. Iranian Journal of Water Resources Research, 2018; 14 (3): 243-256.

[https://www.iwrr.ir/article_60798.html?lang=en]

21. Parhizkari A, Mahmoodi A, Shokat Fadaee M. Assessing the effects of climate change on available water resources and agricultural production in Shahroud watershed. Journal of Agricultural Economics Research, 2017; 33 (9): 23-50.

[https://jae.marvdasht.iau.ir/article_2178.html?lang=en]

22. Parhizkari A, Sabouhi M, Ziaee S. Water market simulation and analysis of the effects of irrigation water sharing policy on cultivation pattern under water scarcity. Journal of Agricultural Economics and Development, 2013; 27 (3): 242-252.

[https://jead.um.ac.ir/article_31582.html?lang=en]

23. Parhizkari A, Yavari Q, Mahmoodi A, Bakhshi Khaniki Q. Evaluation of the Potential Effects of Hydrological Drought on Agricultural Situation, Farmers’ Revenue and Water Consumptions in Tehran Province. Iranian Journal of Water Resources Research, 2019; 16(2): 151-163.

[https://www.iwrr.ir/article_110157.html?lang=en]

24. Paul D W, Medellin-Azuarab J, Joshua HV, Meagan SM. Economic and policy drivers of agricultural water desalination in California’s central valley. Agricultural Water Management, 2017; 194:192-203.

[https://doi.org/10.1016/j.agwat.2017.07.024]

25. Petterini F C. The possibility of a water market in Brazil. EconomiA, 2018; 19(2): 187-200.

[https://doi.org/10.1016/j.econ.2018.03.002]

26. Qureshi M E, Whitten S. Regional impact of climate variability and adaptation options in the southern Murray–Darling Basin, Australia. Water Resources and Economics, 2014; 5(1): 67-84.

[https://doi.org/10.1016/j.wre.2013.12.002]

27. Sabouhi M, Parhizkari A. Analysis of economic and welfare effects of irrigation water market formation in Qazvin province. Journal of Agricultural Economics and Development, 2013; 27 (4): 338-350.

[https://jead.um.ac.ir/article_31835.html?lang=en]

28. Seidl C, Wheeler S A, Zuo A. Treating water markets like stock markets: Key water market reform lessons in the Murray-Darling Basin. Journal of Hydrology, 581, February 2020, Article 124399.

[https://doi.org/10.1016/j.jhydrol.2019.124399]

29. Tehran Province Agricultural Jihad Organization. Deputy for Crop Production Improvement, Department of Agriculture; 2019.

[https://www.tehran-agri.ir/]

30. Tehran Province Regional Water Company. Office of Basic Studies of Water Resources; 2019.

[https://thrw.ir/]

31. Wheeler S A, Loch A, Crase L, Young M, Quentin Grafton R. Developing a water market readiness to assessment framework. Journal of Hydrology, 2017; 552: 807-820.

[B2n.ir/n45063]

32. Yazdani S, Parhizkari A. Assessing the economic and hydrological impacts of climate change in the Khorrood watershed. Journal of Echo Hydrology, 2017; 4 (3): 724-711.

[https://ije.ut.ac.ir/article_62504.html?lang=en]

33. Zaman A M, Malano HM, Avidson BD. An integrated water trading-allocation model, applied to a water market in Australia. Agricultural Water Management, 2009; 96: 149-159.

[B2n.ir/w40446]

34. Zeng XT, Li YP, Huang GH, Liu J. Modeling water trading under uncertainty for supporting water resources management in an arid region. Journal of Water Resources Planning and Management, 2016; 142(2): 66-83.

[B2n.ir/f08513]

35. Zibaee M, Akhondali A M, Radmanesh F, Zarei H. Modernization of irrigation systems and water protection with emphasis on the return effect at the farm level in Bakhtegan catchment. Journal of Agricultural Economics Research, 2019; 12(3): 127-154.

[https://jae.marvdasht.iau.ir/article_3526.html?lang=en]

Establishment of a Structural Institution of the Local Water Market in the Irrigation Network of Tehran Province with Statewide Agricultural Production Model Approach

References

1. Abolhasani L, Shahnooshi N, Rahnema A, Aazame Rahmati A, Heyran F. The role of water market formation in the use of water resources in agriculture (Case study of Mashhad plain). Journal of Agricultural Economics and Development, 2019; 106 (27): 1-29.

[10.30490/AEAD.2022.353656.1309]

2. Ahmadi A, Zolfagharipoor M, Nikoee A, Darali M Y. Economic evaluation of the implementation of the technical context of the agricultural water market, a case study: part of the Mahyar irrigation network. Iranian Journal of Water Resources Research, 2016; 12 (3): 49-35.

[https://www.iwrr.ir/article_16518.html?lang=en]

3. Barikani A, Khalilian S. Dynamic groundwater aquifer management in agriculture: A case study of Qazvin plain. 4th Iranian Water Resources Management Conference, Amir Kabir University of Technology, Tehran; 2011.

[https://civilica.com/doc/117109/]

4. Droitsch D, Robinson B. Share the water: building a secure water future for Alberta, published jointly by can more: water matters society of Alberta, and Vancouver: eco justice, AB; 2009. [www.water-matters.org/docs/share-the-water.pdf.]

5. Garrido S. Governing scarcity. Water markets, equity and efficiency in pre-1950s eastern Spain. International Journal of the Commons, 2011; 5: 513-534.

[https://www.jstor.org/stable/26523085]

6. Gomez-Limon J A, Martinez Y. Multi-criteria modeling of irrigation water market at basin level: A Spanish case study, European journal of operational research, 2006; 173(1): 313-336.

[https://doi.org/10.1016/j.ejor.2004.12.009]

7. Grafton R Q, Horne J, Wheeler S A. On the marketization of water: evidence from the Murray-Darling basin, Australia. Water Recourse Management, 2016; 30(3): 913-926.

[https://link.springer.com/article/10.1007/s11269-015-1199-0]

8. Grafton R Q, Libecap G, McGlennon S, Landry C, Brien B. An integrated assessment of water markets: a cross-country comparison. Rev. Environ. Econ. Policy, 2011; 5(2): 219-239.

[https://www.journals.uchicago.edu/doi/abs/10.1093/reep/rer002?journalCode=reep]

9. Graveline C. Economic calibrated models for water allocation in agricultural production: A review. Environmental Modelling and Software, 2016; 81: 12-25.

[https://doi.org/10.1016/j.envsoft.2016.03.004]

10. Howe C W, Schurmeier D R, Shaw W D. Innovative approaches to water allocation: the potential for water markets. Water resources research, 1986; 22(4): 439-445.

[https://doi.org/10.1029/WR022i004p00439]

11. Howitt R E, Medellin-Azuara J, MacEwan D, Lund R. Calibrating disaggregates economic models of agricultural production and water management. Science of the Environmental Modeling and Software, 2012; 38: 244-258.

[https://doi.org/10.1016/j.envsoft.2012.06.013]

12. Howitt R E, MacEwan D, Medellin-Azuara J, Lund R, Sumner D. Economic analysis of the 2015 drought for California agriculture, UC Davis Center for Watershed Sciences, ERA Economics, UC Agricultural Issues Center, University of California, 2015; 1-31.

[B2n.ir/n01971]

13. Kiani GH. The role of market in optimal water resources allocation and efficacious factors influencing the efficiency of water markets. Journal of Water and Sustainable Development, 2013; 3(1): 93-102.

[https://jwsd.um.ac.ir/article_27805.html?lang=en]

14. Laura G F, Medellin-Azuarac J, Tanseyd M, Young Ch, Purkeyb D, Howitt R. Integrating complex economic and hydrologic planning models: An application for drought under climate change analysis. Water Resources and Economics, 2016; 1-13.

[//dx.doi.org/10.1016/j. wre.2016.10.002]

15. Li H, Zhao J. Rebound Effect of Irrigation Technologies? The Role of Water Rights. Author. 2016 Annual Meeting, July 31 August 2, 2016, Boston, Massachusetts Agricultural and Applied Economics Association, 216; 1-27.

[https://ideas.repec.org/p/ags/aaea16/235966.html]

16. Liang T G. Trading and economic efficiency in selected Victorian water markets in Australia. Thesis presented for the degree of Doctor of Philosophy, Murdoch University, 2016; 1-21.

[B2n.ir/a65220]

17. Mahmoodi A, Parhizkari A. Economic modeling of agricultural water resources management in Tehran province with emphasis on the role of water market. Journal of Economic Modeling, 2016; 35 (3): 121-139.

[https://www.sid.ir/paper/176301/en]

18. Medellan-Azuara J, Harou J J, Howitt R.E. Estimating economic value of agricultural water under changing conditions and the effects of spatial aggregation. Science of the Total Environment, 2010; 408(3): 5639- 5648.

[https://doi.org/10.1016/j.scitotenv.2009.08.013]

19. Nazari M. Water market in theory and practice: market failure and public policy. Journal of Water and Sustainable Development, 2016; 3(1): 103-114.

[https://doi.org/10.22067/jwsd.v3i1.59448]

20. Parhizkari A, Badie Barzin H, Qamri A, Qafari Z. The effects of forming regional water markets on balancing the supply and demand of irrigation water in Sistan region. Iranian Journal of Water Resources Research, 2018; 14 (3): 243-256.

[https://www.iwrr.ir/article_60798.html?lang=en]

21. Parhizkari A, Mahmoodi A, Shokat Fadaee M. Assessing the effects of climate change on available water resources and agricultural production in Shahroud watershed. Journal of Agricultural Economics Research, 2017; 33 (9): 23-50.

[https://jae.marvdasht.iau.ir/article_2178.html?lang=en]

22. Parhizkari A, Sabouhi M, Ziaee S. Water market simulation and analysis of the effects of irrigation water sharing policy on cultivation pattern under water scarcity. Journal of Agricultural Economics and Development, 2013; 27 (3): 242-252.

[https://jead.um.ac.ir/article_31582.html?lang=en]

23. Parhizkari A, Yavari Q, Mahmoodi A, Bakhshi Khaniki Q. Evaluation of the Potential Effects of Hydrological Drought on Agricultural Situation, Farmers’ Revenue and Water Consumptions in Tehran Province. Iranian Journal of Water Resources Research, 2019; 16(2): 151-163.

[https://www.iwrr.ir/article_110157.html?lang=en]

24. Paul D W, Medellin-Azuarab J, Joshua HV, Meagan SM. Economic and policy drivers of agricultural water desalination in California’s central valley. Agricultural Water Management, 2017; 194:192-203.

[https://doi.org/10.1016/j.agwat.2017.07.024]

25. Petterini F C. The possibility of a water market in Brazil. EconomiA, 2018; 19(2): 187-200.

[https://doi.org/10.1016/j.econ.2018.03.002]

26. Qureshi M E, Whitten S. Regional impact of climate variability and adaptation options in the southern Murray–Darling Basin, Australia. Water Resources and Economics, 2014; 5(1): 67-84.

[https://doi.org/10.1016/j.wre.2013.12.002]

27. Sabouhi M, Parhizkari A. Analysis of economic and welfare effects of irrigation water market formation in Qazvin province. Journal of Agricultural Economics and Development, 2013; 27 (4): 338-350.

[https://jead.um.ac.ir/article_31835.html?lang=en]

28. Seidl C, Wheeler S A, Zuo A. Treating water markets like stock markets: Key water market reform lessons in the Murray-Darling Basin. Journal of Hydrology, 581, February 2020, Article 124399.

[https://doi.org/10.1016/j.jhydrol.2019.124399]

29. Tehran Province Agricultural Jihad Organization. Deputy for Crop Production Improvement, Department of Agriculture; 2019.

[https://www.tehran-agri.ir/]

30. Tehran Province Regional Water Company. Office of Basic Studies of Water Resources; 2019.

[https://thrw.ir/]

31. Wheeler S A, Loch A, Crase L, Young M, Quentin Grafton R. Developing a water market readiness to assessment framework. Journal of Hydrology, 2017; 552: 807-820.

[B2n.ir/n45063]

32. Yazdani S, Parhizkari A. Assessing the economic and hydrological impacts of climate change in the Khorrood watershed. Journal of Echo Hydrology, 2017; 4 (3): 724-711.

[https://ije.ut.ac.ir/article_62504.html?lang=en]

33. Zaman A M, Malano HM, Avidson BD. An integrated water trading-allocation model, applied to a water market in Australia. Agricultural Water Management, 2009; 96: 149-159.

[B2n.ir/w40446]

34. Zeng XT, Li YP, Huang GH, Liu J. Modeling water trading under uncertainty for supporting water resources management in an arid region. Journal of Water Resources Planning and Management, 2016; 142(2): 66-83.

[B2n.ir/f08513]

35. Zibaee M, Akhondali A M, Radmanesh F, Zarei H. Modernization of irrigation systems and water protection with emphasis on the return effect at the farm level in Bakhtegan catchment. Journal of Agricultural Economics Research, 2019; 12(3): 127-154.

[https://jae.marvdasht.iau.ir/article_3526.html?lang=en]

Volume 15, Issue 4December 2023Pages 28-51

Files

History

Share

How to cite

Statistics

Volume 15, Issue 4
December 2023
Pages 28-51