Determining the optimal tariff for Treated wastewater in the agricultural sector in the south of Tehran province

Document Type : Research Paper

Authors

1 Professor, Department of Agricultural Economics, Faculty of Agriculture Economics and Development, University of Tehran, Tehran, Iran

2 PhD student, Department of Agricultural Economics, Faculty of Agriculture Economics and Development, University of Tehran, Tehran, Iran

3 Assistant Professor, Department of Agricultural Economics, Faculty of Agriculture Economics and Development, University of Tehran, Tehran, Iran

4 Associate Professor, Department of Agricultural Economics, Faculty of Agriculture Economics and Development, University of Tehran, Tehran, Iran

Abstract

The aim of this study is to determine the optimal tariff for treated wastewater in the agricultural sector in the south of Tehran province. In order to achieve this goal, Used of positive mathematical programming (PMP) optimization method and the conditional valuation method (CVM) to estimate the conservation value. The required information was collected by completing 470 questionnaires by two-stage cluster sampling in the south of Tehran province in 2019. Based on the results, the cost price of treated wastewater was determined to be 21,523 Rial per cubic meter in Tehran province. Market price for each cubic meter of treated wastewater in Qarchak, Pishva, Rey and Varamin cities is 4444, 5556, 9778 and 5000 Rial respectively, value Marginal production is 10080, 15720, 17090 and 12370 Rial and willingness to pay of farmer 9474, 10136, 10173 and was determined to be 10671 Rial. Finally, by examining the conditions of market formation, the optimal tariff for treated wastewater in the south of Tehran province (PEWW) was determined to be 10,114 Rial per cubic meter. Due to the high cost price of each cubic meter of treated farmers are, it is suggested that the private sector enter the wastewater treatment market, because it can pay the difference between the cost price and the willingness to pay of farmers for the treated wastewater from government environmental assistance.

Keywords

References

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Iranian Journal of Agricultural Economics and Development Research
Volume 53, Issue 1
February 2022
Pages 91-108

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