Impact of full cost recovery of irrigation water on the farming economics in the Jordan Valley
2002
Shatanawi, M. | Salman, A. (University of Jordan, Amman (Jordan))
The main objective of this paper is to determine the impact of increasing water price or the full recovery cost for different water qualities on the planted area, water use, total net income and the price of water that farmers are welling to pay in the Jordan Valley. A linear optimizing model is used. The main result of the study shows that at the full cost recovery of $0.05/m3, which has been considered as the highest level of block charge rate, the entire irrigated area is 25,621 ha with total water demand of 234.1 MCM and surface water demand of 162.9 MCM. The total water expenses are $9.02 million and the total net income is $ 142.8 million of which about 79percent comes from surface water. In addition, as the average price of current water use increases, the water price that the farmer is willing to pay (WTP) was also increased but always at lower levels compared with the average current price of water use.
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