| Abstract: | The study contains the methodology of finding the optimal time to start the operation of a desalting plant or any other non conventional source of water for agricultural use in Israel. The essence of the methodology is the moving equilibrium price and quantity of agricultural products. The market of agricultural products is represented by a single demand curve and a supply curve which is derived from the agricultural sector production function. Both the demand for and the supply of agricultural products functions are shifting over time. The marginal value product of water is the critical value that determines the optimal time of a desalting plant. The study is static in the sense that dynamic aspects per se are not dealt with-e.g. learning by doing of building and operating desalting plants. The empirical results although used for illustrative purposes can be used as reference points for other detailed and more ‘exact’ studies on water desalination. |
