Irrigation water demand management to address water scarcity

Abstract

Improving irrigation water productivity is one of the most important ways to deal with water scarcity. Water pricing is considered a crucial tool for water demand management. This research aims atestimating the price elasticity of irrigation water demand in public and private areas of Nadhour using an Ordinary Least Squares regression (OLS). The paper assesses the economic performance of farming system and compares the value of marginal productivity (VMP) of irrigation water to the prices of water. A structured questionnaire and field visits were used to collect data from 140 farmers. Results show that irrigation water demand is less responsive to water price variation. Estimated elasticities are-0.69 and -0.44 respectively in the public and private schemes. The total irrigated area and farmers’ status are the most significant determinants of water demand. Results showed that water productivity in private farming systems is higher than recorded in public farming systemsand the VMP of irrigation water exceeds the prices paid for water