The role of market in optimum allocation of water in Shazand plain

Document Type : Research Paper


1 Ph.D. Candidate in Economics, Department of Economic Arak Branch, Islamic Azad University, Arak, Iran

2 Assistant Professor, Department of Economic Arak Branch, Islamic Azad University Arak, Iran

3 Professor, Department of Economics, Shahid Beheshti University, Tehran, Iran.


Lack of water resources is one of the most important challenges in water management in the country, which is becoming more important due to increasing demand due to population growth and agricultural development. Considering water as a valuable and real-price commodity can provide a good way of consumption and incentives to store and protect it. The purpose of this article is to investigate the role of the market in the optimal allocation of water in the Shazand plain. Changes in the area under cultivation of irrigated crops, yield in two cases (existence of water market and absence of water market) in the crop year 2018-2019 were calculated and compared using Gamz software and positive mathematical programming method. Requirements have been prepared as a library from the Regional Water Organization, Agricultural Jihad and the Management and Planning Organization of Markazi Province. The results show that the establishment of a water market will have a positive effect of 4.33% on the gross profit of farmers in the region. Also, growing crops such as wheat, barley, pinto beans, chickpeas, white beans and lentils are more profitable and can take up more cultivation area. Based on the results, it is suggested that in order to optimally manage water demand in Shazand lands, the necessary basis should be provided for the formation of water market and farmers in the region should export and trade products such as pinto beans, white beans, chickpeas and lentils, etc. To replace more profitable products with high water consumption and low profit.


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