Strategic Policy Options to Improve Irrigation Water Allocation Efficiency: Analysis on Egypt and Morocco



cropping area of wheat, maize, bean, legume, and sugar beet. The main contributions to
irrigation water reduction are from sugar cane and paddy rice. Although other crops demand
more irrigation water as the output tax rate increases, their effects on demand for water is very
small. More land moves out of production and can not be shifted to producing these crops due to
the model constraint on export. Land will be allocated to producing more cotton and vegetables
when the demand constraint is eliminated from the model.

Individual policy scenario analyses compare the scenario results with the base level.
However, because the high sensitivity of the model to any cost and revenue change, the changes
in irrigation water demand, welfare level, cropping pattern, and generated revenue provide good
indicators of the direction of change, but not necessarily an accurate magnitude of change from
the base level. Because the main purpose of this research is to look at some alternative policy
options other than water pricing to identify the possible chances of adopting these policies which
may achieve similar goals to water pricing policy, it is more constructive to compare the results
of each policy with the water pricing results instead of the base level.

Figure 1 plots the percentage of welfare change in the agricultural sector caused by each
policy scenario, contrasting with its percentage change of irrigation water demand. The pattern
of welfare change and irrigation water decrease converges at the water cost recovery level and
lower input or output tax shocks. The pattern of change on welfare and irrigation demand
diverged when input or output taxes are high. Output tax appears to work better than water
pricing policy. However, there are equity concerns related to farmers whose major crops are
paddy rice or sugar cane. It will be hard for them to change the crop mix in the short run.
Welfare measure change in agricultural sector is negative as it is shown in Figure 1. This is
because the welfare measure in this study includes agricultural commodity consumers’ and

14



More intriguing information

1. A Note on Productivity Change in European Co-operative Banks: The Luenberger Indicator Approach
2. Literary criticism as such can perhaps be called the art of rereading.
3. Who is missing from higher education?
4. Behaviour-based Knowledge Systems: An Epigenetic Path from Behaviour to Knowledge
5. The Importance of Global Shocks for National Policymakers: Rising Challenges for Central Banks
6. MULTIMODAL SEMIOTICS OF SPIRITUAL EXPERIENCES: REPRESENTING BELIEFS, METAPHORS, AND ACTIONS
7. The name is absent
8. The name is absent
9. The name is absent
10. THE RISE OF RURAL-TO-RURAL LABOR MARKETS IN CHINA
11. Industrial Cores and Peripheries in Brazil
12. American trade policy towards Sub Saharan Africa –- a meta analysis of AGOA
13. The Distribution of Income of Self-employed, Entrepreneurs and Professions as Revealed from Micro Income Tax Statistics in Germany
14. Ability grouping in the secondary school: attitudes of teachers of practically based subjects
15. Imputing Dairy Producers' Quota Discount Rate Using the Individual Export Milk Program in Quebec
16. The name is absent
17. Income Taxation when Markets are Incomplete
18. AGRICULTURAL PRODUCERS' WILLINGNESS TO PAY FOR REAL-TIME MESOSCALE WEATHER INFORMATION
19. Are Japanese bureaucrats politically stronger than farmers?: The political economy of Japan's rice set-aside program
20. DURABLE CONSUMPTION AS A STATUS GOOD: A STUDY OF NEOCLASSICAL CASES