EVALUATING DIRECT BENEFIT ESTIMATION PROCEDURES FOR IRRIGATION PROJECTS: A SIMPLIFIED APPROACH1

ABSTRACT: An integral part of evaluating the net benefits generated by an existing or proposed irrigation project is the assessment of the associated impacts in commodity markets. Traditionally, these impacts have been measured by either assuming no change in commodity prices and calculating net returns to project farmers, or by allowing commodity prices to fall in accordance with a given elasticity of demand and subtracting commodity production costs from the associated area under the commodity demand curve. In either case, it is implicitly assumed that supply is perfectly inelastic. This article establishes that traditional approaches to measuring direct benefits are biased. Formulae are presented for calculating the maximum absolute and relative error which may result from using these techniques as a function of project size. Direct benefit estimates are then evaluated for three irrigation projects in Nebraska, illustrating how these results can be used to improve project evaluation procedures.     

PRIMARY AND SECONDARY IMPACTS OF A WATER RESOURCE DEVELOPMENT PROJECT1

ABSTRACT: At a time in history when water resource development in the United States is being condemned as both economically inefficient and an environmental disaster, perhaps economists need to look back at previous development to see what the fruits of water development (be they sweet or sour) have been. The Boise Project of south-western Idaho is 70 years old and to some people it represents a gross error in resource use, while to others it represents a means of livelihood and well being. A recent research project at the University of Idaho attempted to measure not only the direct economic income benefits of the project (from irrigation), but also the indirect or secondary income benefits (from the food processing industry). Periodic regional input-output tables were constructed to assess the income generated from irrigation and food processing over the period from 1946 to 1970. Input-output analysis allowed researchers to evaluate the direct and indirect impacts of both the irrigation sector and the food processing sector and to compare their growth over time.     

Drivers and barriers to water transfer in a New Zealand irrigation scheme

Policy makers, economists and water researchers have advocated water transfer and trade as a key potential response to worldwide water scarcity and/or efficiency problems. This paper examines aspects of an operational irrigation scheme in New Zealand that enables transfer of water between shareholders, arguing that the set-up and processes involved with the scheme can provide a wider context for analysis and consideration of social and cultural issues involved with resource allocation. Analysis of the key drivers and barriers for water reveal that while there is potential for real benefits from transferring water for farmers and the community, an examination of some of the processes used, and barriers to transfer reveals important lessons for planning and regulatory perspectives, including the importance of looking at the issues from a procedural and distributive justice viewpoint.     

Assessing the efficiency gains of improved spatial targeting of policy interventions; the example of an agri-environmental scheme

GIS-based spatial targeting is increasingly recognised as a potentially useful tool to design more efficient policy interventions. The use of this tool has also been advocated in the context of incentive-based agri-environmental schemes, but there has been little work to date to estimate the level of efficiency gains which it may help to achieve. This paper investigates the requirements to arrive at such estimates, using a Scottish farm woodland scheme as a case study. This agri-environmental scheme aims to provide visual amenity and biodiversity. Maps of these two benefits are used to develop improved spatial targeting scenarios that deliver significant efficiency gains in comparison to the existing scheme design. The paper discusses the nature of the spatial distribution of the relevant benefits at the landscape scale and the data requirements for the realistic estimation of efficiency gains. It concludes that although much work needs to be done, the methods available today could and should play a much greater role in improving the landscape-scale design of existing land use schemes focused on the delivery of non-market benefits.     

VALUATION OF IMPROVED IRRIGATION EFFICIENCY FROM AN EXHAUSTIBLE GROUNDWATER SOURCE1

This paper presents estimates made via a recursive linear programming model of the net benefits of improving irrigation application efficiency from an exhaustible groundwater source. Net benefits were derived for different application efficiency levels under furrow, sprinkler, and LEPA irrigation systems. In addition, net benefit estimates were obtained for the transition across irrigation systems. Solutions from the model indicate that low crop prices have a differential impact on net benefits across irrigation application efficiencies and irrigation systems. Also, the more limited groundwater situations consistently reduce the economic incentive to adopt improved irrigation application techniques across all irrigation systems.     

OPTIMAL WATER ALLOCATION IN THE LAKES BASIN OF NICARAGUA1

ABSTRACT: The water resources of Nicaragua are largely undeveloped and distributed unequally throughout the nation. In addition, there is a significant geographical imbalance between the abundant water supply in the Atlantic Basin and the less abundant supply in the Pacific Basin which accounts for most of the water demand. The Lakes Basin, comprising Lakes Managua and Nicaragua, could be manipulated to solve the imbalance. Specifically, this paper presents a scheme to transfer water from Lake Nicaragua to Lake Managua and, subsequently, direct water from each lake for irrigation and hydroelectric generation. The scheme has been designed to maximize economic benefits and requires environmental impact analysis.     

WELFARE IMPLICATIONS OF TUBEWELL IRRIGATION IN BANGLADESH1

ABSTRACT: This paper investigates and estimates the welfare loss due to monopoly in tubewell irrigation water market in Bangladesh. In this context, an attempt has been made to evaluate the efficacy of the landless irrigation groups. Using cross-sectional data and regression analysis, cost and demand functions for irrigation water are estimated. The study demonstrates the relatively superior performance of the landless groups in terms of economic efficiency in shallow tubewell irrigation operation, in comparison to irrigation operation by the landowners.     

O&M SPENDING LEVELS IN THIRD WORLD IRRIGATION SYSTEMS: EXPLORING ECONOMIC ALTERNATIVES1

ABSTRACT: Third World irrigation and drainage systems have experienced major declines recently in both capability and performance. This is due initially to working them well beyond their design capaci-capacities; scouring, sedimentation, and overtopping result. Chronic O&M underfunding then adds heavily to this worsening malaise. International donors have assisted irrigation departments with rehabilitation projects and programs to improve O&M effectiveness on a grand (billions of dollars) scale. Despite their historical propensity to examine, almost fastidiously, program economic justifications (B/C, IRR, etc), the donors apparently have glossed over two basic analytic elements for (a) more spending on O&M as distinct from an equivalent spending on other means to provide farmers with an m³ of water; and (b) different levels of O&M spending on canals and drains. Surely those different levels provide differing benefits, in total, and at the margin. Which level is most economic? This paper identifies these latter analytical issues, posits methodologies key to an O&M spending level analysis, and discusses the information base. Particular attention is paid to identifying relevant costs and benefits, and to suggesting supplementary criteria for O&M spending level selection. The paper is an exercise in delineation of an imminently practical area of irrigation engineering economics.     

Institutional reform in the Andean irrigation sector: Enabling policies for strengthening local rights and water management

For centuries, local and indigenous water rights and rules in the Andean region have been largely neglected and discriminated against. The process of undermining local communities’ water access and control rights continues up to today and not only is it headed by powerful local, national and international water‐use actors encroaching local rights — it is also a direct consequence of vertical State law and intervention practices, and the latest privatization policies. Recognition of and security for the diverse and dynamic local rights and management frameworks is crucial for improving rural livelihoods and even national food security in Andean countries. At the request of the Government of Ecuador — in which at that time the indigenous movement had its political participation — a research mission was organized to formulate a proposal for institutional reform, aiming at the strengthening of the national irrigation sector. In this article, some basic mission results are outlined and analyzed within the scope of four concepts (institutional viability, political democracy, equity, and water rights security), and practical elements for institutional reform are suggested, not only for the Ecuadorian irrigation sector but also other settings. The complementary roles of central Government, local governments and water user organizations in water resources management are emphasized as is the need to strengthen enabling legal and policy frameworks. The importance of translating constitutional recognition of local and indigenous rights and common property systems into practical procedures and institutional structures is also stressed.     

Real-time irrigation diversion data delivery can benefit adaptive capacity in communal irrigation systems

There is a need to support applied, community-relevant hydrologic research within changing climate, population, and socioeconomic conditions to better inform water policy and management. We hypothesized that providing a rural agricultural community in a semiarid valley with the necessary monitoring tool to meet local water management needs would increase adaptive capacity within the context of long-term drought. Through a community science approach, researchers installed a telemetry monitoring system at participating acequia irrigation diversions that remotely sent water data to a web interface every 15 min. Two surveys distributed before and after web interface access targeted seven adaptive capacity indicators. After the first season of improved data accessibility, the following adaptive capacity indicators significantly increased: information diversity, cognitive social capital, leadership, and proactivity. Rather than focusing on the water savings aspect of real-time monitoring, this paper summarizes a novel water resources study that assessed the social impact of real-time irrigation water delivery monitoring on adaptive capacity. This study suggests that bridging the gap between community need and hydrologic research through community science, sociologic analysis, and stakeholder engagement provides significant benefits for communities facing water management challenges, further supporting problem-driven water resources research.     

Benefit‐Cost Analysis of Integrated Water Resource Management: Accounting for Interdependence in the Yakima Basin Integrated Plan

Integrated water resource management (IWRM) requires accounting for many interrelated facets of water systems, water uses and stakeholders, and water management activities. The consequence is that project analysis must account for the nonseparability among the component parts of IWRM plans. This article presents a benefit‐cost (B‐C) analysis of a set of projects included in the Yakima Basin Integrated Plan proposed for the Yakima Basin in south‐central Washington State. The analysis accounts for interdependence among proposed water storage projects and between water storage and water market development in the context of historical and more adverse projected future climate scenarios. Focusing on irrigation benefits from storage, we show that the value of a given proposed storage project is lower when other proposed storage projects in the basin are implemented, and when water markets are functioning effectively. We find that none of the water storage projects satisfy a B‐C criterion, and that assuring proposed instream flow augmentation is less expensive by purchasing senior diversion rights than relying on new storage to provide it.     

ECONOMIC EVALUATION OF ON-FARM WATER MANAGEMENT PROJECTS1

ABSTRACT: During the last three decades, developing countries have invested enormous amounts of resources (running into billions of dollars) in the development of large surface irrigation systems. Investment funds were largely spent on the development of the main systems such as dams, canals and distributaries. Very little attention and resources have been spent on the development of below-the-outlet subsystems, in spite of very low levels of water use efficiency due to lack of proper land leveling, high water losses in field channels, and skewed distribution of available water among farmers served by individual water courses. This state of affairs has resulted in a lack of confidence on the part of most farmers in the reliability of surface irrigation systems to deliver water on time and in adequate quantities which, in turn, has resulted in farmers using below optimum levels of all other complementary inputs except labor. Realizing the importance of improving water use efficiency, both the domestic governments and donor agencies are increasingly paying serious attention to these problems. On-Farm Water Management (OFWM) as a strategy to improve water use efficiency and consequently agricultural production in many developing countries has been currently receiving very wide and vigorous consideration among economists, water management experts, policymakers, and donor agencies. A judicious use of the newly allocated funds of OFWM projects obviously needs proper evaluation procedures so that money could be allocated for the most deserving purposes and projects. In particular, recently, private profitability calculations due to public investments in OFWM activities have received attention from economists and decision makers in developing countries’governments and in donor agencies are very much interested in knowing the impacts of their investments in OFWM activities on farmers’income and welfare. However, the evaluation procedures commonly used in empirical studies, using a production function approach, seem to be at variance and sometimes inconsistent with proper comparative-static procedures. Thus, the primary objective of this paper is to develop consistent procedures for evaluating the impacts created by OFWM investments on farmers’income and resource use. In this context, the paper examines the critical relationship between the market price of the agricultural output and production function parameters which are affected by the OFWM investments.     

WEATHER MODIFICATION: AN ECONOMIC ALTERNATIVE FOR AUGMENTING WATER SUPPLIES1

ABSTRACT. Experimental results of cloud seeding in Southwestern Colorado suggest that runoff can be increased by 25 percent over a 3,300 mile area. There is a need to estimate the economic consequences in the Colorado River Basin. The evidence presented suggests that weather modification is an economically feasible means to provide additional water for the basin. Compared with other proposed means of augmenting water supplies, weather modifications appear to be one of the least cost alternatives. A very low proportion of weather modification costs are fixed; thus the program is easily reversible. Also, a relatively small increase in daily precipitation covers the direct costs of operation. Benefits of water produced by weather modification included power production and irrigation of forage crops. In the long run, if additional water is used for higher valued fruit and vegetable production, or for domestic and industrial purposes, its value would rise sharply. Preliminary investigation of extra-market costs and benefits suggests that while they have little effect on the benefit-cost ratio, they may be very important to individuals and groups affected. The distribution of costs and benefits is important as the benefits accrue to downstream users and some of the costs are incurred by Coloradoans. There is a need for further research on the long-run economic effects of weather modification programs, particularly with respect to extra-market factors.     

Water quality management for sustainable agricultural development

This paper presents an analysis of water quality management in the context of increased and sustainable agricultural production through irrigation. Irrigation practices for optimum yield and sustainability are examined as are the environmental and health aspects of irrigation farming.     

A NEW APPROACH FOR ESTIMATING IRRIGATION CONVEYANCE LOSSES AND THEIR ECONOMIC EVALUATION1

ABSTRACT: In this paper a new methodology for estimating conveyance efficiency within irrigation systems is presented. Based on statistical analysis of daily water releases from the source of supply and deliveries to the farmers in an irrigation district in Mexico, a linear model is obtained for estimating conveyance efficiency and two component factors. One of these factors points out the relative importance of the operational losses (i.e., losses due to water management), and the second shows the importance of the fixed losses which can be attributed to the average flow through the canal network without variations. In the last part of this paper, an analysis of the expected benefits and costs accruing from system improvement permits derivation of a decision rule which may be used for analyzing the economic feasibility of lining in-place canals.     

MEASURING CONSUMER SURPLUS BENEFITS OF WATER SUPPLY EXTENSIONS IN DEVELOPING COUNTRIES1

ABSTRACT: For investments in water mains serving new households, consumer surplus benefits may far outweigh those measured by revenues recoupled from user fees. While consumer surplus might be capitalized in the value of sites with access to mains, empirical attempts to measure such capitalization have not proved inveriably successful. In this note an alternative technique based upon the direct estimation of the demand curve is applied. An analysis of Penang Island, Malaysia indicates that the consumer surplus benefits are one and one-half times greater than the revenues recoupled through user fees. The applicability of this technique to cost-benefit analysis of water supply investments is discussed.     

Irrigation and collective action: A study in method with reference to the Shiwalik Hills, Haryana

In recent years decentralized development approaches have gained prominence in the agricultural sector. A host of community based watershed management projects have been implemented that encourage community organizations to undertake management of previously government controlled irrigation systems and forests. Community organizations have been given the responsibility of managing water distribution, collection of irrigation service fees and undertaking routine maintenance of irrigation infrastructure. In this context, analysis of irrigation management has concluded that groups that are relatively homogeneous may fare better than heterogeneous groups in facilitating collective action. However, this article argues that analysis of the influence of group heterogeneity on collective action is complicated because of its multi‐dimensional nature and the presence of non‐monotonic effects in mechanisms linking heterogeneity and collective outcomes. The article discusses the importance of context specification in analysis of group heterogeneity through a discussion of elements of a joint management contract in Haryana (India), identification of key variables with a potential to explain collective action in irrigation management and construction of household endowment and water interest scores to account for the influence of group heterogeneity in facilitating collective action. In the process of applying household endowment and water interest scores, the authors highlight the role of local ecological variation and non‐farm employment in influencing collective action. Proper specification of local context enables the researchers to rely on household endowment and water interest scores to predict conflicts and potential for irrigation service provision and compliance with irrigation service rules.     

Application of game theory for a groundwater conflict in Mexico

Exploitation of scarce water resources, particularly in areas of high demand, inevitably produces conflict among disparate stakeholders, each of whom may have their own set of priorities. In order to arrive at a socially acceptable compromise, the decision-makers should seek an optimal trade-off between conflicting objectives that reflect the priorities of the various stakeholders. In this study, game theory was applied to a multiobjective conflict problem for the Alto Rio Lerma Irrigation District, located in the state of Guanajuato in Mexico, where economic benefits from agricultural production should be balanced with associated negative environmental impacts. The short period of rainfall in this area, combined with high groundwater withdrawals from irrigation wells, has produced severe aquifer overdraft. In addition, current agricultural practices of applying high loads of fertilizers and pesticides have contaminated regions of the aquifer. The net economic benefit to this agricultural region in the short-term lies with increasing crop yields, which requires large pumping extractions for irrigation as well as high chemical loading. In the longer term, this can produce economic loss due to higher pumping costs (i.e., higher lift requirements), or even loss of the aquifer as a viable source of water. Negative environmental impacts include continued diminishment of groundwater quality, and declining groundwater levels in the basin, which can damage surface water systems that support environmental habitats. The two primary stakeholders or players, the farmers in the irrigation district and the community at large, must find an optimal balance between positive economic benefits and negative environmental impacts. In this paper, game theory was applied to find the optimal solution between the two conflicting objectives among 12 alternative groundwater extraction scenarios. Different attributes were used to quantify the benefits and costs of the two objectives, and, following generation of the Pareto frontier or trade-off curve, four conflict resolution methods were then applied.     

苏打盐碱地稻田养鱼

苏打盐碱地主要分布在我国东北地区,是松辽平原农业综合开发的重点对象之一。作者以吉林省西部大安市叉干镇科技示范区为例,介绍了苏打盐碱地井灌稻田养鱼开发的生态效益及关键技术。     

IMPROVING IRRIGATION RETURN FLOW QUALITY WITH A WATER RENTAL MARKET1

ABSTRACT: Current policies for correcting the problem of irrigation return flow pollution tend to attack the symptoms of the problem, rather than its cause. The present institutional arrangement for allocating irrigation water is seen as the source of the problem. This paper examines the water quality benefits of altering the institutional arrangement to allow for irrigation water transfers through a rental market. It is conceptualized that by creating a water rental market an opportunity cost would be associated with the use of irrigation water such that profit maximizing farmers would be induced to use his water supply more efficiently and rent the surplus to other irrigators, thus reducing return flow pollution. It is shown that a water rental market could increase water quality in the Yakima River in southcentral Washington by 31 percent as well as increase farm incomes and crop production.