Assessing the Welfare Externalities of Excessive Groundwater Withdrawals (Case Study: Kerman-Corn Farmers of Orzouiyeh Plain)

Subject Areas : Agricultural Economics Research

Mostafa Baniasadi ¹ (Ph.D student/ Shahid Bahonar University of Kerman)
Mohamad Reza Zare Mehrjerdi ² (دانشیار بخش اقتصاد کشاورزی دانشگاه شهید باهنر کرمان.)
حسین مهرابی بشرآبادی ³ (استاد بخش اقتصاد کشاورزی دانشگاه شهید باهنر کرمان.)
حمیدرضا میرزایی خلیل آبادی ⁴ (استادیار بخش اقتصاد کشاورزی دانشگاه شهید باهنر کرمان.)
عباس رضایی استخروئیه ⁵ (استادیار بخش مهندسی منابع آب دانشگاه شهید باهنر کرمان.)

Received: 2017-02-05 Accepted : 2018-03-13 Published : 2018-03-21

Keywords: Groundwater, Social welfare, externalities, Orzouiyeh Plain,

Abstract :

Orzooiyeh plain is the most important and the largest crop production in Kerman province in Iran. The main sources of water supply in the plain are groundwater resources and unfortunately their excessive extraction has declined water table and created economical and environmental externalities. The aim of present study is estimation of the effect of ground water tables decline on welfare of farmers. For this purpose, first, production and cost functions of corn and then welfare function was estimated and Welfare changes were calculated in respect to changes in groundwater table. The required data and information were obtained through interviews with 151 farmers in the area in cropping year 2014-15 and Agriculture Organization of Kerman and Kerman Regional Water Authority. Results of this study showed that per one meter drop in water ground water table due to excessive withdrawals, welfare of farmers reduce to the amount of 72.3 million rials and total of welfare reduction of Orzouiyeh plain due to aquifer deficit is 58.3 billion rials.

References:

 

- بنی‌اسدی، م. 1395.  ارزیابی اثرات جانبی اقتصادی-محیط زیستی ناشی از برداشت بی‏رویه آب‏های زیرزمینی در حوضه آبریز ارزوئیه. رساله دکتری، دانشکده کشاورزی، گروه اقتصاد کشاورزی، دانشگاه شهید باهنر کرمان.

- تقی‌زاده، س. و سلطانی، غ.ر. 1392. تأثیر اضافه برداشت آب زیرزمینی بر رفاه کشاورزان (مطالعه موردی: گندم کاران شهرستان فسا). پژوهشات اقتصاد کشاورزی، 5(1): 22-1.

- تهامی‌پور، م.، مهرابی بشرآبادی، ح. و کرباسی، ع. 1384. تأثیر کاهش سطح آب‌های زیرزمینی در رفاه اجتماعی تولید کنندگان مطالعه موردی: پسته کاران شهرستان زرند. اقتصاد کشاورزی و توسعه، 13(49): 115-97.

- حسین زاد، ج. و سلامی، ح. 1383. انتخاب تابع تولید برای برآورد ارزش اقتصادی آب کشاورزی مطالعه موردی تولید گندم. اقتصاد کشاورزی و توسعه، 12(48): 84-53.

- خلیلیان، ص. و زارع مهرجردی، م. ر. 1384. ارزشگذاری آب‌های زیرزمینی در بهره‌برداری‌های کشاورزی، مطالعه موردی: گندم‌کاران شهرستان کرمان. اقتصادکشاورزی و توسعه، 51:14-1.

- سلطانی، غ. 1386. اقتصاد مهندسی. مرکز نشر دانشگاه شیراز، شیراز.

- سیدان، س.م.، کهنسال، م.ر. و قربانی، م. 1395. بررسی اثرگذاری رفاهی بهره‌برداری بیش از حد مجاز از منابع آب زیر زمینی در دشت همدان-بهار. اقتصاد کشاورزی، 10(3): 153-129.

- فتحی، ف. و زیبایی، م. 1390. کاهش رفاه ناشی از افت سطح آب‌های زیرزمینی در دشت فیروزآباد. نشریه اقتصاد و توسعه کشاورزی (علوم و صنایع کشاورزی)، 25(1): 19-10.

Refrences

- Acharya, G. (2000). Special issue the value of wetland: landscape and institutional perspectives approaches to valuing the hidden hydrological services of wetland ecosystems. Ecological Economics, 35: 63–74.

- Acharya, G. & Barbier, E. (2000). Valuing groundwater recharge through agricultural production in the Hadejia-Nguru wetlands in northern Nigeria. Agricultural Economics, 22: 247–259.

- Bagheri, A. & Hosseini, S.A. (2011). A system dynamics approach to assess water resources development scheme in the Mashhad plain, Iran, versus sustainability. Proceedings of the 4th International Perspective on Water Resources & the Environment (IPWE), January 2011, Singapore.

- Chambers, R.G. (1988). Applied production analysis: A dual approach. Cambridge University Press.

- Cochran, W.G. (1963). Sampling Techniques. 2nd Fd., New York: John Wiley and Sons, Inc.

- Deacaluwe, B., Patry, A. & Savard, L. (2004). When water is no longer heaven sent: comparative pricing analysis in an AGE model. Retrieved from http://econpapers.hhs.se.

- Doll, P., Muller Schmied, H., Schuh, C., Portmann, FT. & Eicker. A. (2014). Global-scale assessment of groundwater depletion and related groundwater abstractions: combining hydrological modeling with information from well observations and GRACE satellites. Water Resources Research, 50(7): 5698–5720.

- Domenico. P., Anderson, D.V. & Case, C. (1968). Optimal groundwater mining. Water Resource Research, 4(2): 247-255.

- Forootan, E., Rietbroeka, R., Kuschea, J., Sharifib, M.A., Awangec, J.L., Schmidtd, M., Omondie, P. & Famigliettif, J. (2014). Separation of large scale water storage patterns over Iran using GRACE, altimetry and hydrological data. Remote Sensing of Environment,140: 580–595.

- Freeman, A.M. (1993). The measurement of environmental and resource values: theory and methods. Resources for the Future, Washington DC.

- Gayarti, A. & Barbier, E. (2008). Valuing groundwater recharge through agricultural production in the Hadejia-Nguru Westland in northern Nigeria. Agricultural Economics, 22: 247-259.

- Gleeson, T., Wada, Y., Bierkens, M.F.P. & van Beek, L.P.H. (2012). Water balance of global aquifers revealed by groundwater footprint. Nature, 488: 197–200.

- Hojjati, M.H. & Boustani, F. (2010). An assessment of groundwater crisis in Iran, case study: Fars province. World Academy of Science, International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, 4(10): 427–431.

- Izady, A., Davary, K., Alizadeh, A., Ghahraman, B., Sadeghi, M. & Moghaddamnia, A. (2012). Application of “panel-data” modeling to predict groundwater levels in the Neishaboor Plain, Iran. Hydrogeology Journal, 20(3): 435–447.

- Joodaki, G., Wahr, J. & Swenson, S. (2014). Estimating the human contribution to groundwater depletion in the Middle East, from GRACE data, land surface models, and well observations. Water Resources Research, 50: 2679–2692.

- Judge, G., Hill, R. C., Grifith, W. E., Lutkepphi, H. & Lee, T. C. (1988). Introduction to the theory and practice of Econometrics. 2nd Edition, New York, Wiley.

- Kaiser R. & Skiller F. (2003). Options for managing the hidden threat of aquifer depletion in Texas. Texas Tech, Law Review, 32: 250-304.

- Kulshreshtha, S.N. and Brown, W.J. 1990. The economic value of water for irrigation: a historical perspective. Canadian Water Resource, 15: 201-215.

- Lindgren A. (1999). The value of water: a study of the Stampriet Aquifer in Namibia. Master Thesis, Umea University.Department of Economics.

- Madani, K. (2014). Water management in Iran: what is causing the looming crisis? Journal of Environmental Studies and Science, 4: 315–328.

- Soltani, G. & Saboohi, M. (2009). Economic and social impacts of groundwater overdraft: The case of Iran. Paper presented at the Proceedings of the 15th Economic Research Forum (ERF) annual conference.