Estimating the potential gains from water markets: A case study from Tunisia

Slim Zekri, William Easter

Research output: Contribution to journalArticle

23 Citations (Scopus)

Abstract

Water markets can improve water use efficiency through the transfer of water to users who can obtain the highest marginal return from using it. Existing water markets are implemented among farmers or between farmers and urban water companies or hydropower companies. Several studies have shown that farmers may benefit from trading water mainly in countries where water scarcity is increasing and new water supply projects are either very costly or not possible because of environmental concerns. This paper estimates the potential benefits and losses of implementing water market among farmers and between farmers and urban water company in Tunisia. We used linear programming to examine four separate farm models and an aggregate model. The method is applied to an irrigation area of 4500 ha in Northern Tunisia. Results indicate that water trading among farmers would be quite limited and would have a minor impact on farmers' income. In contrast, the market among farmers and the urban water company offers higher volumes of water trades to urban users and helps increase farmers' profitability by up to 7.9%. The sale of water to the urban company is accompanied by a decrease in occasional labor by as much as 34.8% and a decrease of up to 17.6% in farmers' expenditures for inputs and machinery. Additionally, results obtained in this paper show that inter-year storage of irrigation water may be more advantageous than selling water to the urban utility. Whether farmers would opt to sell water or inter-temporarily store it would depend on the establishment of water rights and the empowerment of farmers.

Original languageEnglish
Pages (from-to)161-175
Number of pages15
JournalAgricultural Water Management
Volume72
Issue number3
DOIs
Publication statusPublished - Apr 2 2005

Fingerprint

Tunisia
case studies
markets
market
farmers
water
farmers' markets
irrigation
water rights
water power
water shortages
linear programming
linear programing
empowerment
water use efficiency
profitability
machinery
sales
water supply
irrigation water

Keywords

  • Carryover storage
  • Linear programming
  • Urban water
  • Water rights

ASJC Scopus subject areas

  • Agronomy and Crop Science
  • Soil Science
  • Earth-Surface Processes

Cite this

Estimating the potential gains from water markets : A case study from Tunisia. / Zekri, Slim; Easter, William.

In: Agricultural Water Management, Vol. 72, No. 3, 02.04.2005, p. 161-175.

Research output: Contribution to journalArticle

@article{ec60a4c2f8474d489c55b233c94eeeb3,
title = "Estimating the potential gains from water markets: A case study from Tunisia",
abstract = "Water markets can improve water use efficiency through the transfer of water to users who can obtain the highest marginal return from using it. Existing water markets are implemented among farmers or between farmers and urban water companies or hydropower companies. Several studies have shown that farmers may benefit from trading water mainly in countries where water scarcity is increasing and new water supply projects are either very costly or not possible because of environmental concerns. This paper estimates the potential benefits and losses of implementing water market among farmers and between farmers and urban water company in Tunisia. We used linear programming to examine four separate farm models and an aggregate model. The method is applied to an irrigation area of 4500 ha in Northern Tunisia. Results indicate that water trading among farmers would be quite limited and would have a minor impact on farmers' income. In contrast, the market among farmers and the urban water company offers higher volumes of water trades to urban users and helps increase farmers' profitability by up to 7.9{\%}. The sale of water to the urban company is accompanied by a decrease in occasional labor by as much as 34.8{\%} and a decrease of up to 17.6{\%} in farmers' expenditures for inputs and machinery. Additionally, results obtained in this paper show that inter-year storage of irrigation water may be more advantageous than selling water to the urban utility. Whether farmers would opt to sell water or inter-temporarily store it would depend on the establishment of water rights and the empowerment of farmers.",
keywords = "Carryover storage, Linear programming, Urban water, Water rights",
author = "Slim Zekri and William Easter",
year = "2005",
month = "4",
day = "2",
doi = "10.1016/j.agwat.2004.09.018",
language = "English",
volume = "72",
pages = "161--175",
journal = "Agricultural Water Management",
issn = "0378-3774",
publisher = "Elsevier",
number = "3",

}

TY - JOUR

T1 - Estimating the potential gains from water markets

T2 - A case study from Tunisia

AU - Zekri, Slim

AU - Easter, William

PY - 2005/4/2

Y1 - 2005/4/2

N2 - Water markets can improve water use efficiency through the transfer of water to users who can obtain the highest marginal return from using it. Existing water markets are implemented among farmers or between farmers and urban water companies or hydropower companies. Several studies have shown that farmers may benefit from trading water mainly in countries where water scarcity is increasing and new water supply projects are either very costly or not possible because of environmental concerns. This paper estimates the potential benefits and losses of implementing water market among farmers and between farmers and urban water company in Tunisia. We used linear programming to examine four separate farm models and an aggregate model. The method is applied to an irrigation area of 4500 ha in Northern Tunisia. Results indicate that water trading among farmers would be quite limited and would have a minor impact on farmers' income. In contrast, the market among farmers and the urban water company offers higher volumes of water trades to urban users and helps increase farmers' profitability by up to 7.9%. The sale of water to the urban company is accompanied by a decrease in occasional labor by as much as 34.8% and a decrease of up to 17.6% in farmers' expenditures for inputs and machinery. Additionally, results obtained in this paper show that inter-year storage of irrigation water may be more advantageous than selling water to the urban utility. Whether farmers would opt to sell water or inter-temporarily store it would depend on the establishment of water rights and the empowerment of farmers.

AB - Water markets can improve water use efficiency through the transfer of water to users who can obtain the highest marginal return from using it. Existing water markets are implemented among farmers or between farmers and urban water companies or hydropower companies. Several studies have shown that farmers may benefit from trading water mainly in countries where water scarcity is increasing and new water supply projects are either very costly or not possible because of environmental concerns. This paper estimates the potential benefits and losses of implementing water market among farmers and between farmers and urban water company in Tunisia. We used linear programming to examine four separate farm models and an aggregate model. The method is applied to an irrigation area of 4500 ha in Northern Tunisia. Results indicate that water trading among farmers would be quite limited and would have a minor impact on farmers' income. In contrast, the market among farmers and the urban water company offers higher volumes of water trades to urban users and helps increase farmers' profitability by up to 7.9%. The sale of water to the urban company is accompanied by a decrease in occasional labor by as much as 34.8% and a decrease of up to 17.6% in farmers' expenditures for inputs and machinery. Additionally, results obtained in this paper show that inter-year storage of irrigation water may be more advantageous than selling water to the urban utility. Whether farmers would opt to sell water or inter-temporarily store it would depend on the establishment of water rights and the empowerment of farmers.

KW - Carryover storage

KW - Linear programming

KW - Urban water

KW - Water rights

UR - http://www.scopus.com/inward/record.url?scp=13444309270&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=13444309270&partnerID=8YFLogxK

U2 - 10.1016/j.agwat.2004.09.018

DO - 10.1016/j.agwat.2004.09.018

M3 - Article

AN - SCOPUS:13444309270

VL - 72

SP - 161

EP - 175

JO - Agricultural Water Management

JF - Agricultural Water Management

SN - 0378-3774

IS - 3

ER -