Nasibeh Zarei; Hossein Mehrabi Boshrabadi; Mehdi Khosravy
Abstract
This study estimates water economic value in production of potato in 2011-12, using parametric method of production function. Data have been collected through questionnaires. Research sample includes 208 farmers and landowners in the Koredestan and Hamedan provinces, based on Cochran formula and two ...
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This study estimates water economic value in production of potato in 2011-12, using parametric method of production function. Data have been collected through questionnaires. Research sample includes 208 farmers and landowners in the Koredestan and Hamedan provinces, based on Cochran formula and two stage cluster sampling. In order to select the suitable function, several flexible and non-flexible functions has been checked that results indicate Cobb-Douglas production function acts better than the other tested functions. Elasticity of derived water demand for Potato crops estimated -1/95 which shows policy prices can be important factor to control water utilization. Economic value for each cubic meters of water for producing potato is estimated to be 2348.7 Rail, which it is less than its current price (1203.4 Rials). So, it suggests that in order to save water use in potato production, water value approximate to its market value.
