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Irrigation water pricing: policy implications based on international comparison

Published online by Cambridge University Press:  19 November 2004

YACOV TSUR ,
ARIEL DINAR ,
RACHID M. DOUKKALI  and
TERRY ROE
YACOV TSUR
Affiliation:
Department of Agricultural Economics and Management, The Hebrew University of Jerusalem, POB 12, Rehovot 76100, Israel. Tel: +972-8-9489372, Fax: +972-8-9466267. E-mail: tsur@agri.huji.ac.il
ARIEL DINAR
Affiliation:
Agriculture and Rural Development Department, The World Bank, Washington, DC. (adinar@worldbank.org)
RACHID M. DOUKKALI
Affiliation:
Departement des Sciences Humaines, Institut Agronomique et V't'rinaire, Hassan II, Rabat, Maroc.
TERRY ROE
Affiliation:
Department of Applied Economics, University of Minnesota, St. Paul, MN 55108-6040, USA
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Abstract

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This paper is concerned with the regulation of irrigation water via pricing. The main concepts underlying efficient water use are first discussed and then applied in actual practice to demonstrate empirically how readily available data can be used to implement pricing schemes that achieve efficient allocation of water. The policy discussion includes also equity considerations. The empirical findings, however, reveal that water prices have a small effect on income distribution within the farming sector, thereby supporting the view that water pricing should be designed primarily to increase the efficiency of water use, leaving income distribution considerations to other policy tools.

Type
Research Article
Information
Environment and Development Economics , Volume 9 , Issue 6 , December 2004 , pp. 735 - 755
Copyright
© 2004 Cambridge University Press