Economic Feasibility of Promoting Species of Lower Water Requirements to Improve Water Condition of Lake Urmia Using PES Schemes

Since agricultural sector is considered as the biggest user of freshwater resources in Iran, one of the major factors of Urmia lake drying might be attributed to unsustainable development of agricultural activities. Therefore, it would be of interest to focus the lake restoration measures on water usage management in agricultural sector. It seems that a program to change cropping pattern based on the use of species with lower water requirements instead of higher water need ones is an effective policy. In this study, we attempted firstly, to propose to farmers change in cropping pattern by replacing the sugar beet, alfalfa, corn and tomato with wheat and barley as a solution. Then, results of the survey have been assessed in economic terms. Area in which the survey has been undertaken is Simineh Rud basin. To collect data, a combined techniques of interview and questionnaires have been used. The results of this study showed that this program has sufficient acceptability to the farmers (in 2014) and in case of having financial support by government, it will have successful implementation. Meanwhile, from technical and economic point of view, implementation of such a program has benefit-cost ratio of 2.12 for wheat and 2.06 for barley. Therefore, based on feasibility of such proposal, allocating required budgets, implementing the proposed plan in all other sub-basins of Urmia lake and paying income deficit caused by change in cropping pattern to farmers may be suggested.
JEL Classification: Q51, Q57
Keywords:
Urmia Lake, PES, Changing Cultivation Pattern, Economical Valuation, Required Water