Agricultural Economics and Development

Agricultural Economics and Development

Application of Positive Mathematical Programming for Water Allocation in Agriculture ( Case Study: Agronomy Subsector in Sarakhs Plain)

Authors
R. Moghaddasi
A. Bakhshi
10.30490/aead.2016.59015
Abstract
Pricing policy is generally recommended by economists for better water allocation which is not so welcomed by officials due to economic, cultural and political concerns. This paper offers some alternative policies for improvement in water allocation using Positive Mathematical Programming in Sarakhs' plain agronomy subsector (Khorasan Razavi province). Main results indicate that tax (reduction in level of support) on input and output can be used as alternatives for water pricing, though, the effects of proposed policies on income, water demand and cropping pattern is different from farmer to farmer. Also for crops with high water requirement, tax on output brings more suitable results.

JEL Classifications: Q12, Q15, Q18, Q28

Keywords:
Positive Mathematical Programming, Sarakhs Plain, Alternative Policy