Economics of Irrigation Water Management : A Literature Survey with Focus on Partial and General Equilibrium Models
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World Bank, Washington, DC
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Water policy is an important topic on
the agenda of the international community, and efficiency
and equity in the allocation of water have emerged as
important factors to be considered. Water pricing can be
used to mitigate both the quantity and quality dimensions of
water scarcity. This paper reviews partial equilibrium
models and general equilibrium models that are relevant to
irrigation water management issues. The most widely
discussed issues in these models are water markets and water
pricing. The interrelationships between economic, cultural,
social, and political aspects that are related to water
policy make it difficult to provide a comprehensive policy
analysis. General equilibrium models of irrigation water
management allow incorporation of both the irrigation sector
and the other sectors in the economy and analysis of
policies affecting each of them and the interaction between
them. In addition to being able to address sector and
household specifications, production factors, time horizon,
pricing policies, and institutions such as water markets,
general equilibrium models allow the analysis of the impact
of water policies on equity and poverty alleviation. The
authors conclude that, although there has been a significant
increase in efforts to analyze water related problems,
analytical and empirical research in the field is still
deficient and more effort is needed to address them.
Palabras clave
ACCESS TO WATER, AGGREGATE DEMAND, AGRICULTURAL COMMUNITIES, AGRICULTURAL OUTPUT, AGRICULTURAL PRODUCTION, ALLOCATION OF WATER, ALLOCATION OF WATER RIGHTS, ALLOCATION PROCESS, ALLOCATION SYSTEM, ARABLE LAND, ASYMMETRIC INFORMATION, AVAILABILITY OF WATER, BASINS, BOARD MEMBERS, CALIBRATION, CAPITAL MARKETS, CATCHMENTS, CLASSICAL ECONOMISTS, CLIMATE CHANGE, CLIMATIC CONDITIONS, COLLECTIVE ACTIONS, COMPARATIVE ADVANTAGE, COMPARATIVE ANALYSIS, COMPETITIVE MARKETS, CONCEPTUAL FRAMEWORK, CONSERVATION, CONSUMER SURPLUS, CONSUMPTION CHARGES, CONTINGENT VALUATION, CONTINGENT VALUATION METHOD, COST OF WATER, COST RECOVERY, COVERING, DAM CONSTRUCTION, DECISION MAKING, DEMAND FOR WATER, DEVELOPED COUNTRIES, DRAINAGE, DRINKING WATER, DROUGHT, DUBLIN PRINCIPLE, ECONOMIC ACTIVITY, ECONOMIC ANALYSIS, ECONOMIC CONSEQUENCES, ECONOMIC DEVELOPMENT, ECONOMIC FACTORS, ECONOMIC GOODS, ECONOMIC GROWTH, ECONOMIC MODELS, ECONOMICS, ECONOMIES OF SCALE, ECONOMISTS, EFFICIENT USE OF WATER, EFFICIENT WATER USE, EMPIRICAL RESEARCH, ENGINEERING, ENVIRONMENTAL, ENVIRONMENTAL ECONOMICS, ENVIRONMENTAL ISSUES, ENVIRONMENTAL POLICIES, ENVIRONMENTAL POLICY, ENVIRONMENTAL PROTECTION, ENVIRONMENTAL TAX, EQUILIBRIUM, EXCESS WATER, EXPENDITURES, EXTERNALITIES, FARMERS, FARMING, FARMS, FERTILIZERS, FINANCIAL RESOURCES, FIXED COSTS, FLOODS, FOOD POLICY RESEARCH, FOOD PRODUCTION, GOVERNMENT FINANCING, GROUND WATER, GROUNDWATER, GROUNDWATER RESOURCES, HEDONIC PRICING, HIGH WATER, HOUSEHOLDS, INCOME, INCOME DISTRIBUTION, INCOME INEQUALITY, INTERMEDIATE INPUTS, INTERNATIONAL WATER, IRRIGATION, IRRIGATION DEVELOPMENT, IRRIGATION MANAGEMENT, IRRIGATION SYSTEMS, IRRIGATORS, LAND DEGRADATION, LEGISLATION, LIVESTOCK PRODUCTS, LOCAL AUTHORITIES, LOCALITY, LOGGING, MAINTENANCE COSTS, MARGINAL COST, MARGINAL COSTS, MARKET FOR WATER RIGHTS, MARKET MECHANISM, MARKET PRICES, MATHEMATICAL PROGRAMMING, MIDDLE EAST, NATURAL MONOPOLIES, NEGATIVE EXTERNALITIES, NORTH AFRICA, OPPORTUNITY COSTS, PESTICIDES, POLITICAL ECONOMY, POSITIVE EXTERNALITIES, POVERTY ALLEVIATION, PRICE CHANGES, PRICE OF WATER, PRIOR APPROPRIATION, PRODUCERS, PRODUCTION FUNCTIONS, PRODUCTION OUTPUT, PRODUCTIVITY, PROPERTY RIGHTS, PROVISION OF SERVICES, PROVISION OF WATER, PUBLIC GOOD, PUBLIC GOODS, QUALITY OF WATER, RECHARGE, REGIONAL DEVELOPMENT, RETURNS TO SCALE, RIPARIAN, RIPARIAN RIGHTS, RIVER BASIN, SALINITY, SAVINGS, SCARCITY OF WATER, SHADOW PRICES, SOUTH AMERICA, STREAMS, SUB-SAHARAN AFRICA, SUPPLY OF WATER, TAXATION, TRANSACTION COSTS, URBAN WATER, VARIABLE COSTS, WATER ALLOCATION, WATER ALLOCATIONS, WATER AUTHORITIES, WATER AVAILABILITY, WATER CHARGES, WATER CONSUMPTION, WATER CONSUMPTION CHARGES, WATER DEMAND, WATER DISTRIBUTION, WATER DISTRICT, WATER DISTRICTS, WATER ECOSYSTEMS, WATER FEES, WATER LEGISLATION, WATER MANAGEMENT, WATER MANAGEMENT AGENCIES, WATER MARKET, WATER MARKETS, WATER METERS, WATER NEEDS, WATER POLICIES, WATER POLICY, WATER POLLUTION, WATER PRICES, WATER PRICING, WATER PRICING METHODS, WATER PRODUCTION, WATER PROJECTS, WATER QUALITY, WATER QUALITY PROBLEMS, WATER REQUIREMENTS, WATER RESOURCES, WATER RIGHTS, WATER SAVINGS, WATER SCARCITY, WATER SCARCITY PROBLEMS, WATER SERVICES, WATER STORAGE, WATER SUPPLIERS, WATER SUPPLY, WATER SUPPLY SECURITY, WATER SYSTEM, WATER TRANSFER, WATER TRANSFERS, WATER USE, WATER USER, WATER USERS, WATER UTILITIES, WATER UTILITY, WELFARE GAINS, WILLINGNESS TO PAY