Document Type: Original Article

Authors

1 Department of Agricultural Economics, Shahid Bahonar University of Kerman, Kerman, Iran.

2 Department of Economics, University of Sistan and Baluchestan, Zahedan, Iran.

Abstract

This paper aimed to evaluate Water Use Efficiency (WUE) indices for crops and horticulture productions. In doing so, after gathering data from 164 farmers, we investigated water withdrawal cost indices and monetary return per cubic meter of water through two econometric and managerial approaches . Besides, water shadow pricesand dry matters of per cub meter of water were calculated. The results revealed that the average monetary return per cubic metre of water is 3875.4 IRR (0.134 USD) and cost per cubic metre of well water equals 839.3 IRR (0.029 USD), four times more than the value of some current development projects of water resources. Finally, according to the findings, we suggested a corrected price trade term to adjust water monetary return indices.Control policies and government participation in funding of artificial recharge of undergorund aquifers projects were recommended as well.

Graphical Abstract

Highlights

  • Water Use Efficiency (WUE) indices for crops and horticulture productions.
  • To assess water withdrawal cost indices and financial return per cubic meter, two econometric and managerial approaches were applied.
  • Water residual model produces misleading results in determining financial per cubic metre of water.
  • Water withdrawal cost in plains under water crisis has considerably increased.
  • Partnership of government is necessary in funding of artificial recharge of groundwater aquifers projects.

Keywords

Main Subjects

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