| Abstract: | For optimal allocation of resources, it is critical to arrive at proper estimations of direct benefits created by irrigation projects. This paper reviews critically the traditinal procedures of estimating the direct irrigation benefits and, in this context, presents formulas to show the extent of bias in them. The paper further discusses the implications of shifts in demand over time for biases in the estimation of direct benefits through traditional procedures and provides altenate procedures for the proper estimation of direct irrigation benefits. In this context, it throws some light on the exact distribution of benefits between consumers and producers. |
