Economic Value of Irrigation Water: Evidence from a Punjab Canal

Abstract

This study is based on data from a cross sectional survey of 120 farms located along the Mithaluck irrigation canal in central Punjab. The data collected were analyzed using (i) the residual imputation method, and (ii) the change in net income method, and applied to a linear programming model to estimate the value productivity of irrigation water. Returns to irrigation varied by farm size and location on the canal, but were generally found to be very high relative to the estimated delivery cost of irrigation water. The results of this study could prove useful in determining the economic feasibility of various resources for supplementing water and improving delivery and application efficiencies