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Economic and land use impacts of improving water use efficiency in South Asia

Author

Listed:
  • Taheripour, Farzad
  • Hertel, Thomas
  • Sahin, Sebnem
Abstract
This paper uses an advanced computable general equilibrium model coupled with biophysical data on land and water resources by Agro-ecological zone at a river basin level to examine: 1) the economy-wide consequences of improvement in water use efficiency (WUE) in irrigation in South Asia; 2) the extent to which enhanced WUE can increase food production and improve food security in South Asia; and 3) how WUE in irrigation alters demand for water and affects land use across South Asia. Given that the extent to which the economies of South Asia can actually improve water use efficiency in irrigation is uncertain, it tests four different levels of efficiency gains in irrigation: 10%, 20%, 30%, and 40%. It examines improvement in WUE under two alternative cost assumptions: 1) improvement in WUE is costless and 2) improvement in WUE needs additional investment. With a 10 percent improvement in WUE, the overall respective increases in food production during the time period 2008-2030 in India, Bangladesh and the rest of South Asia would be about $50.5 billion, $3.5 billion and $29.6 billion at 2007 constant prices. Improvement in WUE in irrigation reduces the rain-fed harvested areas and increases irrigated areas. A 10 percent improvement in WUE increases the areas of irrigated cropland by 6.1 million hectares, 296,000 hectares and 1.9 million hectares in India, Bangladesh and the rest of South Asia. When improvement in WUE is costless, the net present values of gains due to a 10 percent improvement in WUE (with a 3 percent social discount rate) are about $45.6 billion for India, $3.6 billion for Bangladesh, and $21.8 billion for rest of South Asia at 2007 constant prices for the time period of 2007-2030. Gains grow as the level of improvement in WUE increases. When improvement in WUE needs additional investments, welfare gains drop but gains in food production remain high.

Suggested Citation

  • Taheripour, Farzad & Hertel, Thomas & Sahin, Sebnem, 2016. "Economic and land use impacts of improving water use efficiency in South Asia," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236063, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:236063
    DOI: 10.22004/ag.econ.236063
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    Cited by:

    1. Farooq, Muhammad & Hussain, Mubshar & Ul-Allah, Sami & Siddique, Kadambot H.M., 2019. "Physiological and agronomic approaches for improving water-use efficiency in crop plants," Agricultural Water Management, Elsevier, vol. 219(C), pages 95-108.
    2. Haqiqi, Iman, 2017. "Global Economic Response to Water Scarcity," Conference papers 332869, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Iman Haqiqi & Farzad Taheripour & Jing Liu & Dominique van der Mensbrugghe, 2016. "Introducing Irrigation Water into GTAP Data Base Version 9," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 1(2), pages 116-155, December.
    4. Lars Nilsson, 2018. "Reflections on the Economic Modelling of Free Trade Agreements," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 3(1), pages 156-186, June.
    5. Sahin, Sebnem & Narayanan, Badri & Aleksandrova, Svetlana, 2019. "Top Down and Bottom-up Approaches to Climate Change Adaptation in Bulgaria," Conference papers 330196, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Yu Liu & Xiaohong Hu & Qian Zhang & Mingbo Zheng, 2017. "Improving Agricultural Water Use Efficiency: A Quantitative Study of Zhangye City Using the Static CGE Model with a CES Water−Land Resources Account," Sustainability, MDPI, vol. 9(2), pages 1-15, February.
    7. Kirby Ledvina & Niven Winchester & Kenneth Strzepek & John M. Reilly, 2018. "New Data for Representing Irrigated Agriculture in Economy-Wide Models," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 3(1), pages 122-155, June.
    8. Bwambale, Erion & Abagale, Felix K. & Anornu, Geophrey K., 2022. "Smart irrigation monitoring and control strategies for improving water use efficiency in precision agriculture: A review," Agricultural Water Management, Elsevier, vol. 260(C).
    9. Muhammad Zeshan & Jong-Hwan Ko, 2019. "An Analysis of Adaption Policies to Climate Change: Gdyn-W Model," PIDE-Working Papers 2019:159, Pakistan Institute of Development Economics.
    10. Ramsha Munir & Tehzeeb Bano & Iftikhar Hussain Adil & Umer Khayyam, 2021. "Perceptions of Glacier Grafting: An Indigenous Technique of Water Conservation for Food Security in Gilgit-Baltistan, Pakistan," Sustainability, MDPI, vol. 13(9), pages 1-22, May.

    More about this item

    Keywords

    Environmental Economics and Policy; Land Economics/Use; Political Economy; Productivity Analysis;
    All these keywords.

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