creators_name: Ahmad Sadeghi , 
creators_name: Mohammad Khodabakhsh, 
creators_name: Ghazali Mohayidin , 
creators_name: Naser Motiee, 
creators_name: Seyed  Reza Nazarihashemi , 
type: article
datestamp: 2013-12-18 08:40:10
lastmod: 2013-12-18 08:40:10
metadata_visibility: show
corp_creators: Department of Economics and Management, Power and Water University of Technology, Vafadar,  Exp’way, Shahid Abaspour Blv, Tehran, I.R.Iran
corp_creators: Department of Economics and Management, Power and Water University of Technology, Vafadar,  Exp’way, Shahid Abaspour Blv, Tehran, I.R.Iran
corp_creators: Open University Malaysia
corp_creators: Department of management and Agricultural Development, Faculty of Economics and Agricultural  Development, College of Agriculture & Natural Resources, University of Tehran, 4111 Karaj, Iran.
corp_creators: Department of Economics and Management, Power and Water University of Technology, Vafadar,  Exp’way, Shahid Abaspour Blv, Tehran, I.R.Iran
title: An Econometric Estimation of Irrigation Water Demand for 
Watermelon in Iran
ispublished: pub
subjects: S1
full_text_status: public
keywords: Price elasticity, Panel data, watermelon
abstract: . Iran is located in an arid and semi-arid area with scarcity of water resource for its agricultural 
activities. About 93 percent of the total annual Iranian water consumption is for agricultural activities. Not 
with standing high irrigation water demand in the agricultural sector, farmers pay very low price for water 
and the cost borne by farmers for irrigation water is much lower than the actual value of water. The low 
irrigation fee has caused not only inefficient allocation of water resources in this sector, but it has also 
resulted in farmers producing crops which require relatively large amount of water as well as non-essential 
crops. The main objective of this study is to estimate the demand for irrigation water, and to analyze the 
current pricing mechanism (policy) for water. The demand elasticity of goods, services and input determines 
which a change in price, ceteris paribus, affects users’ quantity demanded. This study investigated the 
structure of irrigation water demand by estimating the derived demand for water on a particular crop, 
watermelon, in Iran. A derived demand function is estimated after performing the relevant statistical tests. 
The price elasticity of irrigation water demand and other elasticities are also computed. The price elasticity is 
found significant. Data and information from 2001 to 2006 from 21 provinces in Iran is employed. 
Parameters for the demand functions were estimated using Ordinary Least Squares (OLS). The parameters of 
models were estimated using the econometric method on panel data. The estimated water price coefficients 
are found to be negative which confirm the economic pricing theory. (Abstract by authors)
 
date: 2012-11
date_type: published
publication: International Proceedings of Economics Development & Research;
volume: 55
number: Nov
refereed: TRUE
citation:   Ahmad Sadeghi ,  and Mohammad Khodabakhsh,  and Ghazali Mohayidin ,  and Naser Motiee,  and Seyed Reza Nazarihashemi ,   (2012) An Econometric Estimation of Irrigation Water Demand for Watermelon in Iran.  International Proceedings of Economics Development & Research;, 55 (Nov).       
document_url: https://library.oum.edu.my/repository/907/1/018-ICEBM2012-K10001.pdf