THE ECONOMIC VALUE OF CROP WATER IN IRAN- 2019

Abstract

Water resource management is one of the challenges that societies have faced in recent decades; The growing shortage of fresh water to meet the demand of various  sectors of the economy droughts, floods and quantitative and qualitative reduction of water resources, engineering "water supply" on the one hand and population growth, urbanization and the growing of water consumption, Management of the "water demand" side, on the other hand, makes it necessary. The price is considered one of the main tools of demand management, which protect the water resources, its storage and sufficient income for the public water service unit. The main purpose of this study is to determine the economic value of water. For this purpose, 28 crops in 31 provinces of the Iran are considered and the economic value of these crops are obtained using translog production function method. The results of the research show that, in 2019, the economic value of water of these crops in the Iran was 17100 Rl per cubic meter. The elasticity of crop production with respect to water is also 21%, which shows that a one percent changes in water consumption, increases crop production by 21% assuming other conditions are constant.