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Assessing Direct Economic Effects of Reallocating Irrigation Water to Alternative Uses: Concepts and an Application

Assessing Direct Economic Effects of Reallocating Irrigation Water to Alternative Uses: Concepts and an Application
  • World Bank. July 2011
  • This study reviews the experience with irrigation water transfers, including the involvement of the World Bank. It then discusses the problems of assessing the direct economic effects of reallocations, with a focus on the foregone direct benefits (FDB) in irrigated agriculture. The study reviews the methodologies and model specifications used for estimating FDB; illustrates the impact of different model specifications on the magnitude of FDB estimates based on an application with a case example; and draws conclusions with regard to future efforts in assessing reallocation effects, including calculating adequate compensation for farmers.
  • Geographical coverage: Global
  • Main themes: Agriculture, Economic impact, Infrastructure, Irrigation, Markets, Recycling, Water allocation, Water demand, Water management, Water supply
  • Main target audience: Academia, Agriculture sector, Decision makers, Policy makers, Project planners, Water managers
  • Main purpose: Assessment
  • Type of resource: Assessment report
  • Download file (358.6 MB)
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Published in 2015