Abstract
Water is a resource every day more scarce, and thus more expensive. It is therefore necessary to estimate its price or opportunity cost to optimize its use. The objective of this paper is to estimate the economic value of irrigation water (surface and groundwater) in the Alto Oil Irrigation District (ARLID). To that end, linear programming methods are formulated, emphasizing possible reductions on water availability of 18 and 24%. Land, water, labor and agriculture machinery are constraints in the model. Gross revenues minus production costs estimate net revenues. Model solutions use both 1999 product prices and those estimated for 2010. Net revenue, crop pattern and marginal revenue are reported. Marginal revenue is used as shadow price of irrigation water and, according to the results, varies from Mex $0.54-2.28/m3 for surface water and between Mex $0.66 and 6.85/m3 for groundwater. The shadow price of groundwater rises up to Mex $152/m3 for highly profitable crops.
Translated title of the contribution | Water productivity in the alto rio lerma (oil) irrigation district |
---|---|
Original language | Spanish |
Pages (from-to) | 483-493 |
Number of pages | 11 |
Journal | Agrocencia |
Volume | 36 |
Issue number | 4 |
State | Published - 2002 |
Keywords
- Linear programming
- Shadow prices
- Water value
ASJC Scopus subject areas
- Animal Science and Zoology
- Agronomy and Crop Science
- General Environmental Science
- Plant Science