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Effects of Water Market Formation in the Basin of Lake Urmia

Doost Mohammadi, Saeed | 2021

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 54366 (44)
  4. University: Sharif University of Technology
  5. Department: Management and Economics
  6. Advisor(s): Vesal, Mohammad
  7. Abstract:
  8. Considering that the agricultural sector is the largest consumer of water in the basin of Lake Urmia, it seems necessary to provide comprehensive methods of water resources management and formulate appropriate policies to increase water productivity in this sector. For this reason, in this research, we examine the effects of creating a water market in the basin of Lake Urmia. For this purpose, models of agricultural economics and positive mathematical programming techniques at the regional level have been used for modeling to analyze the various effects of water market creation. According to the model, the farmer chooses his cultivation pattern according to the price of the crop and the inputs as well as the conditions of the land and the amount of available water. The price of water and the amount of access to it is an important factor in the decision of the farmer in choosing the cultivation pattern. Using the data, we calibrate the agricultural economy model in a way that it reproduces the observations in the base year. Subsequently, the model is used to examine the effects of water market formation. With the formation of the water market, farmers' profits will increase by 2.95% compared to when a water market is nonexistent. One of the policies of the Urmia Lake Restoration Program is a 40% reduction in water rights. With the implementation of this policy, farmers' profits will reduce by 3.29%; whereas, if a water market is formed, farmers' profits will reduce by 2.26% compared to when there are no water rights due to the lack of a market. Therefore, the formation of a water market will increase farmers' profits
  9. Keywords:
  10. Water Market ; Positive Mathematical Programming ; Calibration ; Lake Urmia Watershed ; Rural Economy ; Water Resources Management

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