IDEAS home Printed from https://ideas.repec.org/a/ags/agreko/31704.html
   My bibliography  Save this article

Application of Stochastic Dynamic Programming (SDP) for the optimal allocation of irrigation water under capacity sharing arrangements

Author

Listed:
  • Gakpo, E.F.Y.
  • Tsephe, J.
  • Nwonwu, F.
  • Viljoen, Machiel F.

Abstract

This study attempts to arrive at an optimal allocation of irrigation water using capacity sharing (CS) as an institutional arrangement, and stochastic dynamic programming (SDP) as an optimisation model. It determines the value of an additional unit of water under a crop enterprise mix of lucerne-maize-wheat (LMW). SDP is an improvement on linear programming (LP) under stochastic conditions. The SIM-DY-SIM Model was used to simulate optimal returns, decision and policy variables under varying conditions of capacity share. LP results show that wheat has the highest MVP of R0.39/m3, with maize exhibiting the lowest value of R0.09/m3. The MVPs generated with SDP range between R0.06/m3 and R0.35/m3 on the whole farm basis, with revenue to the farmer increasing with an increase in CS content and increased percentage water release. However, the MVP of water decreased with the increased supply of the resource - a phenomenon that follows the general rule of decreasing marginal utility of a resource as more of it is used.

Suggested Citation

  • Gakpo, E.F.Y. & Tsephe, J. & Nwonwu, F. & Viljoen, Machiel F., 2005. "Application of Stochastic Dynamic Programming (SDP) for the optimal allocation of irrigation water under capacity sharing arrangements," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 44(4), pages 1-16, December.
    • Handle: RePEc:ags:agreko:31704
    DOI: 10.22004/ag.econ.31704
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/31704/files/44040436.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.31704?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Dudley, Norman J. & Hearn, A. Brian, 1993. "Systems modeling to integrate river valley water supply and irrigation decision making under uncertainty," Agricultural Systems, Elsevier, vol. 42(1-2), pages 3-23.
    2. Backeberg, G.R., 1997. "Water institutions, markets and decentralized resource management: Prospects for innovative policy reforms in irrigated agriculture," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 36(4), pages 1-35, December.
    3. Gakpo, E. F. Y. & du Plessis, L. A. & Viljoen, M. F., 2001. "Towards Institutional Arrangements to Ensure Optimal Allocation and Security of South Africa's Water Resources," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 40(1), March.
    4. Reca, Juan & Roldan, Jose & Alcaide, Miguel & Lopez, Rafael & Camacho, Emilio, 2001. "Optimisation model for water allocation in deficit irrigation systems: I. Description of the model," Agricultural Water Management, Elsevier, vol. 48(2), pages 103-116, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jingjing Wu & Jian Chen & Yu Han & Tongshu Li, 2020. "Study on Unsteady Flow Based on Optimized Water Distribution Model in Irrigation District," Sustainability, MDPI, vol. 12(4), pages 1-13, February.
    2. Venot, Jean-Philippe & Reddy, V. Ratna & Umapathy, Deeptha, 2010. "Coping with drought in irrigated South India: Farmers' adjustments in Nagarjuna Sagar," Agricultural Water Management, Elsevier, vol. 97(10), pages 1434-1442, October.
    3. Harris, Simon & Doak, Murray & Ford, Stuart & Bywater, Tony & Bright, John & Thorrold, Bruce S., 2005. "Regional Economic Implications of Water Allocation and Reliability," 2005 Conference, August 26-27, 2005, Nelson, New Zealand 98516, New Zealand Agricultural and Resource Economics Society.
    4. R. Roozbahani & B. Abbasi & S. Schreider, 2015. "Optimal allocation of water to competing stakeholders in a shared watershed," Annals of Operations Research, Springer, vol. 229(1), pages 657-676, June.
    5. Boukherroub, Tasseda & LeBel, Luc & Ruiz, Angel, 2017. "A framework for sustainable forest resource allocation: A Canadian case study," Omega, Elsevier, vol. 66(PB), pages 224-235.
    6. R. Roozbahani & S. Schreider & B. Abbasi, 2013. "Economic Sharing of Basin Water Resources between Competing Stakeholders," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(8), pages 2965-2988, June.
    7. Karam, F. & Amacha, N. & Fahed, S. & EL Asmar, T. & Domínguez, A., 2014. "Response of potato to full and deficit irrigation under semiarid climate: Agronomic and economic implications," Agricultural Water Management, Elsevier, vol. 142(C), pages 144-151.
    8. Dedi Liu & Xiaohong Chen & Zhanghua Lou, 2010. "A Model for the Optimal Allocation of Water Resources in a Saltwater Intrusion Area: A Case Study in Pearl River Delta in China," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(1), pages 63-81, January.
    9. Chen, Shu & Shao, Dongguo & Gu, Wenquan & Xu, Baoli & Li, Haoxin & Fang, Longzhang, 2017. "An interval multistage water allocation model for crop different growth stages under inputs uncertainty," Agricultural Water Management, Elsevier, vol. 186(C), pages 86-97.
    10. Yokwe, Stanley, 2009. "Water productivity in smallholder irrigation schemes in South Africa," Agricultural Water Management, Elsevier, vol. 96(8), pages 1223-1228, August.
    11. Kemeze, Francis H. & Miranda, Mario J. & Kuwornu, John & Amin-Somuah, Henry, 2016. "Optimal Management of Runoff Reservoir Supply: The Case of Tono Reservoir in Northern Ghana," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 236030, Agricultural and Applied Economics Association.
    12. Javier Alarcón & Alberto Garrido & Luis Juana, 2014. "Managing Irrigation Water Shortage: a Comparison Between Five Allocation Rules Based on Crop Benefit Functions," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 28(8), pages 2315-2329, June.
    13. Hearn, A. B. & Bange, M. P., 2002. "SIRATAC and CottonLOGIC: persevering with DSSs in the Australian cotton industry," Agricultural Systems, Elsevier, vol. 74(1), pages 27-56, October.
    14. Levan Elbakidze & Brett Schiller & R. Garth Taylor, 2017. "Estimation of Short and Long Run Derived Irrigation Water Demands and Elasticities," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(01), pages 1-22, January.
    15. M. Babel & A. Gupta & D. Nayak, 2005. "A Model for Optimal Allocation of Water to Competing Demands," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 19(6), pages 693-712, December.
    16. Sapino, Francesco & Pérez-Blanco, C. Dionisio & Gutiérrez-Martín, Carlos & García-Prats, Alberto & Pulido-Velazquez, Manuel, 2022. "Influence of crop-water production functions on the expected performance of water pricing policies in irrigated agriculture," Agricultural Water Management, Elsevier, vol. 259(C).
    17. Aliasghar Montazar, 2013. "A decision tool for optimal irrigated crop planning and water resources sustainability," Journal of Global Optimization, Springer, vol. 55(3), pages 641-654, March.
    18. López-Mata, E. & Orengo-Valverde, J.J. & Tarjuelo, J.M. & Martínez-Romero, A. & Domínguez, A., 2016. "Development of a direct-solution algorithm for determining the optimal crop planning of farms using deficit irrigation," Agricultural Water Management, Elsevier, vol. 171(C), pages 173-187.
    19. Garg, N.K. & Dadhich, Sushmita M., 2014. "A proposed method to determine yield response factors of different crops under deficit irrigation using inverse formulation approach," Agricultural Water Management, Elsevier, vol. 137(C), pages 68-74.
    20. Aliasghar Montazar & H. Riazi & S. Behbahani, 2010. "Conjunctive Water Use Planning in an Irrigation Command Area," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(3), pages 577-596, February.

    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:agreko:31704. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aeasaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.