of total irrigation water (Table 6). The main industrial crops under LSI are sugar beet, sugar cane
and peanuts. Sugar beet production consumes 7.9%, sugar cane production consumes 7.9% and
peanut production consumes 6.8% of the total irrigation water served by the LSI system. Wheat
and industrial crops receive producer price subsidies (Diao, Roe, and Somwaru). More
specifically, wheat and sugar have border protection while sunflower receives a deficiency
payment. Wheat and sugar beets are not among the most water intensive crops. However, they
use a significant amount of land. This causes water demand for wheat and sugar beet to be high.
Sugar cane, peanuts, and sunflowers use water more intensively compared to most of the other
crops. Output taxes could serve as a mechanism to reallocate water use from producing cereal
crops and industrial crops to producing vegetables and fruits which are the major export goods in
Morocco.
Unlike the ASME model for Egypt, imports in the ASMM are endogenous instead of
exogenous. However, exports are exogenous in the ASMM as well. In order to capture the export
opportunities and responses from the policy scenarios tested, an export bound is also assumed in
the policy simulation: the lower bound of exports is the base level and an upper bound is set to
20% higher than the base level.
Model Results for Morocco
Water pricing at the cost recovery level affects cropping patterns in both irrigated and rain-fed
land (Table 7). Changes occur on LSI as land used for cereals decreased. There is only a small
change on PRI for cereal production. The corresponding changes for cereal crops in rain-fed area
are barley and corn. However, imports for durum wheat, bread wheat, and barley increased. Land
for producing beans decreased 6% and other pulses decreased by 66% compared to the base level
while imports for beans increased. Industrial crops decreased as well, especially sugar cane and
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