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Irrigation production functions with water‐capital substitution

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  • Uri Shani
  • Yacov Tsur
  • Amos Zemel
  • David Zilberman

Abstract

The dynamics of biomass growth implies that the yield of irrigated crops depends, in addition to the total amount of water applied, on irrigation scheduling during the growing period. Advanced irrigation technologies relax constraints on irrigation rates and timing, allowing us to better adjust irrigation scheduling to the varying needs of the plants along the growing period. Irrigation production functions, then, should include capital (or expenditures on irrigation equipment) in addition to aggregate water. We derive such functions and study their water‐capital substitution properties. Implications for water demand and adoption of irrigation technologies are investigated. A numerical example illustrates these properties.

Suggested Citation

  • Uri Shani & Yacov Tsur & Amos Zemel & David Zilberman, 2009. "Irrigation production functions with water‐capital substitution," Agricultural Economics, International Association of Agricultural Economists, vol. 40(1), pages 55-66, January.
    • Handle: RePEc:bla:agecon:v:40:y:2009:i:1:p:55-66
    DOI: 10.1111/j.1574-0862.2008.00359.x
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    1. Knapp, Keith C. & Dinar, Ariel, 1988. "Production with optimum irrigation management under saline conditions," Engineering Costs and Production Economics, Elsevier, vol. 14(1), pages 41-46, May.
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    1. Lichtenberg, Erik, 2013. "Optimal Investment in Precision Irrigation Systems: A Dynamic Intraseasonal Approach," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149920, Agricultural and Applied Economics Association.
    2. Huaicheng Li & Qing He & Chenming Liu & Wei Dai & Rilong Fei, 2022. "How to Maintain Sustainable Development of China’s Agriculture under the Restriction of Production Resources? Research with Respect to the Effect on Output of the Substitution of Input Factors," Energies, MDPI, vol. 15(10), pages 1-19, May.
    3. Foster, T. & Brozović, N., 2018. "Simulating Crop-Water Production Functions Using Crop Growth Models to Support Water Policy Assessments," Ecological Economics, Elsevier, vol. 152(C), pages 9-21.
    4. Bauman, Allison & Goemans, Christopher & Pritchett, James & Thilmany McFadden, Dawn, 2015. "Modeling Imperfectly Competitive Water Markets in the Western U.S," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 201448, Agricultural and Applied Economics Association.
    5. Rebecca Taylor & David Zilberman, 2017. "Diffusion of Drip Irrigation: The Case of California," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(1), pages 16-40.

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