Estimating economic and environmental consequences of extraction from underground waters (Case: Ardakan County)

Document Type : Research Paper

Authors

1 Department of Agricultural Economics, Faculty of Agriculture and Natural Resources, Ardakan University, Ardakan, Iran

2 Associate Professor, Agricultural Economics, University of Ardakan

3 Assistant Professor, Agricultural Economics, University of Ardakan

Abstract

Extraction from underground waters more than natural discharge of watershed has led to balance deficit and lowering level of water tables and water shortage in many regions. The current research mainly aims to estimate economic and environmental consequences of extraction from underground waters in Ardakan County. In order to determine final personal cost of consumers, sum of annual pumping costs and sum of well drilling costs were calculated 63 billion and 290 billion Rials respectively. In section of additional costs due to extraction, the sum of protective value of underground waters was estimated 22 billion Rials in Ardakan County, using conditional valuation and a two-dimensional technique. The cost for reducing production of farming crops as a part of additional costs caused by extraction was estimated 1’211 billion Rials with respect to statistics of years i.e. 1987-2016. Much difference between additional cost of extraction and personal cost of consumers may be useful in changing attitude of the officials and sectors of industry and agriculture as the greatest consumers of water supplies for optimal consumption of subterranean water supplies. Also, sum of cost for extraction from underground waters (1’586 billion Rials) contribute to the government and policymakers to justify alternative for water transfer in this zone. 

Keywords

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Iranian Journal of Agricultural Economics and Development Research
Volume 49, Issue 2
May 2018
Pages 203-213

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