AN INTEGRATED HYDRO-ECONOMIC MODELING TO EVALUATE MARKETING REFORM POLICIES OF AGRICULTURAL PRODUCTS

Authors

  • HADI RAFIEI DARANI Ferdowsi University of Mashhad, Agricultural Economic Department, Mashhad 9177948974, Iran Author
  • MOHAMMAD REZA KOHANSAL Ferdowsi University of Mashhad, Agricultural Economic Department, Mashhad 9177948974, Iran Author
  • MOHAMMAD GHORBANI Ferdowsi University of Mashhad, Agricultural Economic Department, Mashhad 9177948974, Iran Author
  • MAHMOUD SABOOHI Ferdowsi University of Mashhad, Agricultural Economic Department, Mashhad 9177948974, Iran Author

Keywords:

water resources managemen, hydro-economic model, regional positive mathematical programming, WEAP

Abstract

Water scarcity is a global concern, particularly in arid and semi-arid. This fact should be considered in decision making and management of water resources and also policy makers should pay attention to the effects of these policies as a crucial criterion. This study was carried out to investigate the effect of different policies of agricultural products marketing network reform on water resources management, especially on the use of groundwater in the Neyshabur basin in Iran. Thus, taking into account the effects of marketing on the supply and demand water, we used hydro-economic (H-E) model. In the economic sector of the H-E model, Regional Positive Mathematical Programming (RPMP) was used to study the effects of various scenarios (marketing network reform policies) on crop patterns. In the hydrologic sector of the H-E model, WEAP was used to analyze and simulate of water resources according to the different crop patterns (results obtained from economic sector). 

The results showed the network marketing reform leads to change in cropping pattern. The cultivated area of crops with high marketing margin was increased. Also, the cultivated area of alfalfa and cotton decreased in most scenarios. The results of the hydrological model simulations (WEAP model) showed that the change in cropping pattern (due to marketing network reform) made increase water use in Neyshabur basin and increase pressure on groundwater. It seems the marketing reform could not reduce overdraft of water resources. Complementary policies appear to be necessary to gain desirable achievements from marketing network reform and reduce groundwater overdraft. 

References

Ahrends, H., M. Mast, C. Rodgers and H. Kunstmann, 2008. Coupled hydrological–economic modelling for optimised irrigated cultivation in a semi-arid catchment of West Africa. Environmental Modelling & Software, 23 (4): 385-395.

Andreu, J., J. Capilla and E. Sanchís, 1996. AQUATOOL, a generalized decision-support system for water-resources planning and operational management. Journal of Hydrology, 177 (3):

-291.

Arjoon, D., Y. Mohamed, Q. Goor and A. Tilmant, 2014. Hydroeconomic risk assessment in the eastern Nile River basin. Water Resources and Economics, 8: 16-31.

Bateman, I. J., R. Brouwer, H. Davies, B. H. Day, A. Defl andre, S. D. Falco, A. P. Jones, 2006. Analysing the Agricultural Costs and Non-market Benefi ts of Implementing the Water Framework Directive. Journal of Agricultural Economics, 57 (2): 221-237.

Bear, J. and O. Levin, 1970. Optimal utilization of an aquifer as an element of a waterresource system: research period 1967–68. Selected Works in Operations Research and Hydraulics. Israel Institute of Technology, Haifa, pp. 64-279.

Bhave, A. G., A. Mishra and N. S. Raghuwanshi, 2014. Evaluation of hydrological effect of stakeholder prioritized climate change adaptation options based on multi-model regional climate projections. Climatic Change, 123 (2): 225-239.

Blanco-Gutierrez, I., C. Varela-Ortega and D. R. Purkey, 2011. Integrated economic-hydrologic analysis of policy responses to promote sustainable water use under changing climatic conditions. Paper presented at the EAAE Congress.

Briscoe, J., 1996. 3. Water as an economic good. Cost–Benefi t Analysis and Water Resources Management, 46.

Brouwer, R. and M. Hofkes, 2008. Integrated hydro-economic modelling: Approaches, key issues and future research directions. Ecological Economics, 66 (1): 16-22.

Brouwer, R., D. Barton, I. Bateman, L. Brander, S. Georgiou, J. Martín-Ortega, . . .and A. Wagtendonk, 2009. Economic valuation of environmental and resource costs and benefi ts in the water framework directive: technical guidelines for practitioners. Institute for Environmental Studies, VU University Amsterdam, Netherlands.

Cai, X. and D. Wang, 2006. Calibrating holistic water resources– economic models. Journal of Water Resources Planning and Management, 132 (6): 414-423.

Cai, X., D. C. McKinney and L. S. Lasdon, 2003. Integrated hydrologic-agronomic-economic model for river basin management. Journal of Water Resources Planning and Management, 129 (1): 4-17.

Cai, X., C. Ringler and J.-Y. You, 2008. Substitution between water and other agricultural inputs: Implications for water conservation in a River Basin context. Ecological Economics, 66 (1): 38-50.

Chatterjee, B., R. E. Howitt and R. J. Sexton, 1998. The optimal joint provision of water for irrigation and hydropower. Journal of Environmental Economics and Management, 36 (3):

-313.

Cortignani, R. and S. Severini, 2009. Modeling farm-level adoption of defi cit irrigation using Positive Mathematical Programming. Agricultural Water Management, 96 (12): 1785-1791. de Fraiture, C., 2007. Integrated water and food analysis at the global and basin level. An application of WATERSIM. Water Resources Management, 21 (1): 185-198.

FAO., 2015. Food and Agriculture Organization of the United Nations. http://www.un.org/waterforlifedecade/scarcity.shtml

Harma, K. J., Johnson, M. S. and S. J. Cohen, 2012. Future water supply and demand in the Okanagan Basin, British Columbia: a scenario-based analysis of multiple, interacting stressors. Water Resources Management, 26 (3): 667-689.

Harou, J. J. and J. R. Lund, 2008. Ending groundwater overdraft in hydrologic-economic systems. Hydrogeology Journal, 16 (6): 1039-1055.

Harou, J. J., M. Pulido-Velazquez, D. E. Rosenberg, J. Medellín-Azuara, J. R. Lund and R. E. Howitt, 2009. Hydroeconomic models: Concepts, design, applications, and future prospects. Journal of Hydrology, 375 (3): 627-643.

Heckelei, T. and W. Britz, 2000. Positive mathematical programming with multiple data points: a cross-sectional estimation procedure. Cahiers d’economie et Sociologie Rurales, 57 (4):

-50.

Heckelei, T. and W. Britz, 2005. Models based on positive mathematical programming: state of the art and further extensions. Modelling Agricultural Policies: State of the Art and New Challenges, Parma, Italy, pp. 48-73.

Heinz, I., M. Pulido-Velazquez, J. Lund and J. Andreu, 2007. Hydro-economic modeling in river basin management: implications and applications for the European water framework directive. Water Resources Management, 21 (7): 1103-1125.

Helming, J. F., 2005. A model of Dutch agriculture based on Positive Mathematical Programming with regional and environmental applications, Wageningen University, Wageningen.

Hiwasaki, L. and S. Arico, 2007. Integrating the social sciences into ecohydrology: facilitating an interdisciplinary approach to solve issues surrounding water, environment and people. Ecohydrology & Hydrobiology, 7 (1): 3-9.

Höllermann, B., S. Giertz and B. Diekkrüger, 2010. Benin 2025 - Balancing future water availability and demand using the WEAP ‘Water Evaluation and Planning’System. Water Resources Management, 24 (13): 3591-3613.

Howitt, R. E., 1995. Positive mathematical programming. American Journal of Agricultural Economics, 77 (2): 329-342.

Howitt, R. E., J. Medellín-Azuara, D. MacEwan and J. R. Lund, 2012. Calibrating disaggregate economic models of agricultural production and water management. Environmental Modelling & Software, 38: 244-258.

Jenkins, M. W., J. R. Lund, R. E. Howitt, A. J. Draper, S. M. Msangi, S. K. Tanaka,. . . G. F. Marques, 2004. Optimization of California’s water supply system: Results and insights. Journal of Water Resources Planning and Management, 130 (4): 271-280.

KHRW, 2015. Khorasan Razavi Regional Water Authority. http://www.khrw.ir

Kragt, M., 2013. Hydro-economic modelling in an uncertain world: Integrating costs and benefi ts of water quality management. Water Resources and Economics, 4: 1-21.

Krol, M., A. Jaeger, A. Bronstert and A. Güntner, 2006. Integrated modelling of climate, water, soil, agricultural and socioeconomic processes: A general introduction of the methodology and some exemplary results from the semi-arid north-east of Brazil. Journal of Hydrology, 328 (3): 417-431.

Lence, S. H. and D. J. Miller, 1998. Estimation of multi-output production functions with incomplete data: A generalised maximum entropy approach. European Review of Agricultural Economics, 25 (2): 188-209.

Loucks, D. P., 2006. Modeling and managing the interactions between hydrology, ecology and economics. Journal of Hydrology, 328 (3): 408-416.

Ludwig, R., R. Roson, C. Zografos and G. Kallis, 2011. Towards an inter-disciplinary research agenda on climate change, water and security in Southern Europe and neighboring countries. Environmental Science & Policy, 14 (7): 794-803.

Macleod, C. J., D. Scholefi eld and P. M. Haygarth, 2007. Integration for sustainable catchment management. Science of the Total Environment, 373 (2): 591-602.

Maneta, M., M. d. O. Torres, W. Wallender, S. Vosti, R. Howitt, L. Rodrigues,. . S. Panday, 2009. A spatially distributed hydroeconomic model to assess the effects of drought on land use, farm profi ts, and agricultural employment. Water Resources Research, 45 (11).

McKinney, D. C., 1999. Modeling water resources management at the basin level: Review and future directions, Vol. 6: IWMI.

Medellín-Azuara, J., J. J. Harou and R. E. Howitt, 2010. Estimating economic value of agricultural water under changing conditions and the effects of spatial aggregation. Science of the Total Environment, 408 (23): 5639-5648.

Medellín-Azuara, J., R. Howitt and J. Harou, 2012. P redicting farmer responses to water pricing, rationing and subsidies assuming profi t maximizing investment in irrigation technology. Agricultural Water Management, 108: 73-82.

Medellín-Azuara, J., R. E. Howitt, D. J. MacEwan and J. R. Lund, 2011. Economic impacts of climate-related changes to California agriculture. Climatic Change, 109 (1): 387-405.

Medellín-Azuara, J., L. Mendoza-Espinosa, J. Lund, J. Harou, and R. Howitt, 2009. Virtues of simple hydro-economic optimization: Baja California, Mexico. Journal of Environmental Management, 90 (11): 3470-3478. MO, 2015. Meteorological Organization.

http://www.razavimet.ir

Paris, Q., and R. E. Howitt, 1998. An analysis of ill-posed production problems using maximum entropy. American Journal of Agricultural Economics, 80 (1): 124-138.

Peña-Haro, S., M. Pulido-Velazquez and A. Sahuquillo, 2009. A hydro-economic modelling framework for optimal management of groundwater nitrate pollution from agriculture. Journal of Hydrology, 373 (1): 193-203.

Peter, H. G., H. Cooley, M. Cohen, M. Morikawa, J. Morrison and M. Palaniappan, 2008. The World’s Water 2008–2009: The Biennial Report on Freshwater Resources, Island Press, Oakland, CA.

Preckel, P. V., D. Harrington and R. Dubman, 2002. Primal/dual positive math programming: illustrated through an evaluation of the impacts of market resistance to genetically modifi ed grains. American Journal of Agricultural Economics, 84 (3):

-690.

Pulido-Velazquez, M., J. Andreu, A. Sahuquillo and D. PulidoVelazquez, 2008. Hydro-economic river basin modelling: The application of a holistic surface–groundwater model to assess opportunity costs of water use in Spain. Ecological Economics, 66 (1): 51-65.

Qureshi, M., S. Qureshi, K. Bajracharya and M. Kirby, 2008. Integrated biophysical and economic modellingframework to assess impacts of alternative groundwater management options. Water Resources Management, 22 (3): 321-341.

Röhm, O. and S. Dabbert, 2003. Integrating agri-environmental programs into regional production models: an extension of positive mathematical programming. American journal of Agricultural Economics, 85 (1): 254-265.

Rosegrant, M. W., C. Ringler, D. C. McKinney, X. Cai, A. Keller and G. Donoso, 2000. Integrated economic-hydrologic water modeling at the basin scale: The Maipo River basin. Agricultural Economics, 24 (1): 33-46.

Turner, R. K., J. C. Van Den Bergh, T. Söderqvist, A. Barendregt, J. van der Straaten, E. Maltby and E. C. van Ierland, 2000. Ecological-economic analysis of wetlands: scientifi c integration for management and policy. Ecological Economics, 35 (1): 7-23.

Varela-Ortega, C., I. Blanco-Gutiérrez, C. H. Swartz and T. E. Downing, 2011. Balancing groundwater conservation and rural livelihoods under water and climate uncertainties: An integrated hydro-economic modeling framework. Global Environmental Change, 21 (2): 604-619.

Voinov, A., R. Costanza, L. Wainger, R. Boumans, F. Villa, T. Maxwell and H. Voinov, 1999. Patuxent landscape model: integrated ecological economic modeling of a watershed. Environmental Modelling & Software, 14 (5): 473-491.

Volk, M., J. Hirschfeld, A. Dehnhardt, G. Schmidt, C. Bohn, S. Liersch and P. W. Gassman, 2008. Integrated ecologicaleconomic modelling of water pollution abatement management options in the Upper Ems River Basin. Ecological Economics, 66 (1): 66-76.

You, G. J.-Y. and C. Ringler, 2010. Hydro-economic modeling of climate change impacts in Ethiopia. Retrieved from

Young, R. A. and J. B. Loomis, 2014. Determining The Economic Value of Water: Concepts and Methods: Routledge.

Downloads

Published

28.04.2017

Issue

Section

Agricultural Economics and Management

How to Cite

RAFIEI DARANI, H., REZA KOHANSAL, M., GHORBANI, M., & SABOOHI, M. (2017). AN INTEGRATED HYDRO-ECONOMIC MODELING TO EVALUATE MARKETING REFORM POLICIES OF AGRICULTURAL PRODUCTS. Bulgarian Journal of Agricultural Science, 23(2), 189-198. https://agriacad.eu/ojs/index.php/bjas/article/view/5097