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



% Change of Welfare from Base

-6                -5


-4                -3


NF(10%)


P Pw3


PEST(200%)
O


A ENG(200%)


■ OUTP(50%)


O PEST(50%)
0pest(100%)eNG(50%)
NF(50%)        ,,'Pw1


A ENG(100%)  '.OUTP(10%)

NF(100%)           .∙-'^

× Pw2


Ifl OUTP(25%)


0

-2

-4

-6

-8

-10

-12

-14

-16


INF (*) - N-fertilizer Tax , PEST(*) - pesticide tax, ENG (*) - energy tax, OUTP(*) - output tax

Figure 1 Egypt: Welfare and Irrigation Water Demand Changes

-0.3


NF-

PEST- PEST- PEST-

OUTP- OUTP- OUTP-

ENG- ENG- ENG-

50%  100% 200%

50%  100% 200%

10%  50%  100%

10%  25%  50%

NF- NF-

Pw2 Pw3

0.0

-0.1

-0.1

-0.2

-0.2

-0.3

Figure 2 Egypt: Comparisons on Water Demand Elasticity


35




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