Water demand management by water pricing policy in datepalm gardens in Jahrom A case study of Shahani datepalm

Document Type : Original Article

Abstract

    Formulation of appropriate pricing policies should include consideration of the inelasticity and elasticity of agricultural demand for water, when economic instruments should be considered concurrently with social and environmental requirements. The data were collected using multi stage random sampling method in 2006. The result showed that there was a positive and significant relationship between the number of productive datepalm, the total labor used and the number of irrigation with amount of date production. Marginal productivity of water in gravity and drip irrigation method is 0.194 kg and value of marginal productivity of water was calculated 204.06 Rials in this irrigation method. Marginal productivity of water in basin irrigation system method is 0.13 kg and value of marginal productivity of water was calculated 140.73 Rials in this irrigation method. The cost of each m3 of water was calculated 67.23 Rials on the base of 20 percent interest rate. Demand elasticity for water in gravity drip irrigation and basin irrigation system methods has been –3.035 and –2.093 respectively which show that demands for water are elastic in both irrigation methods.   JEL Classification: D400, D460, Q110, Q150