Estimating the economic value of water in the production of sugar beet in Golestan province

Document Type : Scientific - Research

Authors

1 MSc in Agricultural Economics, Gorgan University of Agricultural Sciences and Natural Resources, Gorgan, Iran.

2 Associate Professor of Agricultural Economics, Gorgan University of Agricultural Sciences and Natural Resources, Gourgan, Iran.

3 Assistant Professor of Agricultural Economics, Gorgan University of Agricultural Sciences and Natural Resources, Gourgan, Iran.

Abstract

Water is one of the most valuable natural resources that, as one of the main inputs for the production of agricultural products, has a special place in providing food security and sustainable development of the agricultural sector. Determining the real price based on the economic value of water, as one of the most important economic tools of water demand management, plays an important role in the optimal allocation of water resources between different regions and products, especially under water shortage crisis. In this regard, in the economic value of water input was estimated using the production function estimation of sugar beet in Golestan province in the present study. For this purpose, at the beginning, a suitable functional form was selected according to the production technology of this product based on econometric criteria using information related to 166 sugar beet growers in Golestan province in the crop season of 2020-21 with a random stratified sampling method. Results of this study showed that the translog production function is the best functional form. After estimating the production function, the economic value of water input was estimated as 20,690 Iranian Rials per m-3. The results also showed that the amount paid by growers as water price (3490 Rials) is approximately 17% of the economic value of water, which is very different from the actual price of water. Therefore, it is suggested to obtain the real price of water by gradually eliminating the difference between the water price paid by growers and the economic value of water.

Keywords

Main Subjects

References

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Journal of Sugar Beet
Volume 39, Issue 1
September 2023
Pages 103-120

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