Introduction and Assessment of the Necessity of Economic Efficiency Usage Along with Physical Efficiency in Irrigation

Considering the ever increasing importance of water as an economic good in agriculture and common criteria not being responding well in water usage assessment, this research was dedicated to the assessment of economic efficiency. In this research, first the water price was calculated for Palm and citrus in two area of Kerman province by a mathematic model in 2008. As the second step economic and physical efficiencies was calculated for each crop under the circumstances of four different scenarios.
Regarding to the results, it can be said that economic and physical efficiencies cannot be separately used in order to the assessment of water usage in farm scale. In addition, economic and physical efficiencies are not parallel. An increase in physical or economical efficiencies cannot determine the quality of the work has been done in farm scale or even bigger scales. Considering the fact that physical and economical efficiencies are separated and different factor, they are always needed to be determined and studied together.

JEL Classification: Q25