Determining economic value and demand function of water in producing sugar beet in Kerman

Document Type : Original Article

Authors

Abstract
Agriculture is one of the major users of water in Kerman. In this study, economic value and demand function of water for sugar beet production in Kerman is estimated. The required data was collected by filling 130 questionnaires from producers. Results show that water is the most effective input in producing sugar beet by an estimated coefficient of 0.25. Therefore, it has the greatest impact on studied inputs. Also, price elasticity of water demand itself is less than minus 1, which shows that pricing policy is a main factor in controlling non-optimum use of water. The real price of water to produce sugar beet is estimated to be 705 Rials per cubic meter wich292.39 Rials higher than the market price. It is suggested that estimated price gap be set as a basic price in order to apply water pricing policy to control incorrect use of water.

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  • Receive Date 06 June 2010
  • Revise Date 18 July 2010
  • Accept Date 10 September 2010