Estimation and Simulation of Willingness-to-Pay for Siminehrood Agricultural Water in the Boukan Plain: Application of Bootstrapping Approach

Document Type : Research Paper

Authors

1 Associate Professor, Department of Agricultural Economics, Faculty of Agriculture, University of Tabriz, Tabriz, Iran

2 MSc. Student, Department of Agricultural Economics, Faculty of Agriculture, University of Lorestan, Khoram Abad, Iran

Abstract

Free distribution of irrigation water in many plains of Urimye and low price of water has led to inefficient use and allocation of scarce water resources. Charging an affordable price for irrigation water will help increase water efficiency, reduce water demand, managing irrigation systems and covering distribution costs. As water price reflect the opportunity cost of water, it largely dependents on the farmers’ willingness to pay. In this study, we estimated farmers’ willingness to pay (WTP) for agricultural water by using contingent valuation method (CVM), and we analyzed it with the bootstrap simulation method. We collected the data from 134 farmers in the riverbank of "Siminehrood" in "Boukan plain" by using random sample method. The CVM and bootstrap results show that the average willingness to pay for each cubic meter of water, are 477.48 and 438.47 riyals respectively. Ages of farmers, cultivated area, agricultural and auxiliary income are main significant factors of farmers’ willingness to pay. Based on the results, setting appropriate water price policy and participating farmers in making decision-making on water pricing will result a better allocation of irrigation water.

Keywords

References

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Iranian Journal of Agricultural Economics and Development Research
Volume 49, Issue 3
August 2018
Pages 429-438

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