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Feasibility of adopting smart water meters in aquifer management: An integrated hydro-economic analysis

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  • Zekri, Slim
  • Madani, Kaveh
  • Bazargan-Lari, Mohammad Reza
  • Kotagama, Hemesiri
  • Kalbus, Edda

Abstract

The feasibility of groundwater monitoring was investigated by a case study on adopting smart water meters to measure groundwater extraction at individual farms and a centralized online information management system to measure collective aquifer water extraction. Benefits of optimal groundwater management was estimated using hydro-economic models that simulate, for a 70-year period, private and social optimality, taking into account the effects of seawater intrusion on groundwater salinity. A Bayesian inference system was used as an interface between a dynamic programming model and MODFLOW groundwater simulation model. The case study’s cost data were scaled-up to the aquifer level and compared to the incremental benefits between private and socially optimal water extraction. The results showed that the Net Present Value of measuring and monitoring groundwater extraction using smart water meters as $790 million ($1332/ha/year) with an Internal Rate of Return of 93%. The sustainable use of the aquifer results to a reduction of the cropped area by 10%, a reduction of the groundwater extraction by 20%, a change in the crop mix, and 42% of the least-efficient farms exiting farming. The exiting farmers could convert farm lands to other land uses such as residential, urban, industrial land use, with adequate facilitation provided by the government. The impact of change of groundwater management strategy on the arid ecology with reduction in tree cover is noted.

Suggested Citation

  • Zekri, Slim & Madani, Kaveh & Bazargan-Lari, Mohammad Reza & Kotagama, Hemesiri & Kalbus, Edda, 2017. "Feasibility of adopting smart water meters in aquifer management: An integrated hydro-economic analysis," Agricultural Water Management, Elsevier, vol. 181(C), pages 85-93.
  • Handle: RePEc:eee:agiwat:v:181:y:2017:i:c:p:85-93
    DOI: 10.1016/j.agwat.2016.11.022
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    References listed on IDEAS

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    1. Zekri, Slim, 2008. "Using economic incentives and regulations to reduce seawater intrusion in the Batinah coastal area of Oman," Agricultural Water Management, Elsevier, vol. 95(3), pages 243-252, March.
    2. Madani, Kaveh & Dinar, Ariel, 2012. "Non-cooperative institutions for sustainable common pool resource management: Application to groundwater," Ecological Economics, Elsevier, vol. 74(C), pages 34-45.
    3. Steven S. Vickner & Dana L. Hoag & W. Marshall Frasier & James C. Ascough, 1998. "A Dynamic Economic Analysis of Nitrate Leaching in Corn Production under Nonuniform Irrigation Conditions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 397-408.
    4. Foster, S., 2012. "Groundwater resources and irrigated agriculture: making a beneficial relation more sustainable," IWMI Working Papers H045034, International Water Management Institute.
    5. Kumar, Dinesh M., 2013. "Raising Agricultural Productivity, Reducing Groundwater Use and Mitigating Carbon Emissions: Role of Energy Pricing in Farm Sector," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 68(3), pages 1-17.
    6. Strand, Jon, 2010. "The full economic cost of groundwater extraction," Policy Research Working Paper Series 5494, The World Bank.
    7. Kumar, M. Dinesh, 2005. "Impact of electricity prices and volumetric water allocation on energy and groundwater demand management:: analysis from Western India," Energy Policy, Elsevier, vol. 33(1), pages 39-51, January.
    8. Douglas M. Larson & Gloria E. Helfand & Brett W. House, 1996. "Second-Best Tax Policies to Reduce Nonpoint Source Pollution," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 1108-1117.
    9. Slim Zekri & Chefi Triki & Ali Al-Maktoumi & Mohammad Bazargan-Lari, 2015. "An Optimization-Simulation Approach for Groundwater Abstraction under Recharge Uncertainty," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 29(10), pages 3681-3695, August.
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    Cited by:

    1. Pauline Pedehour & Marianne Lefebvre, 2023. "Combining digital technologies and incentives for water conservation: A Q-method study to understand preferences of French irrigators," Post-Print hal-04626643, HAL.
    2. Amar Oukil & Slim Zekri, 2021. "Investigating farming efficiency through a two stage analytical approach: Application to the agricultural sector in Northern Oman," Papers 2104.10943, arXiv.org.
    3. Aein, Reza & Alizadeh, Hosein, 2021. "Integrated hydro-economic modeling for optimal design of development scheme of salinity affected irrigated agriculture in Helleh River Basin," Agricultural Water Management, Elsevier, vol. 243(C).
    4. Benjamin Ouvrard & Raphaële Préget & Arnaud Reynaud & Laetitia Tuffery, 2020. "Nudging and Subsidizing Farmers to Foster Smart Water Meter Adoption," Working Papers hal-02958784, HAL.
    5. Sidhu, Balsher Singh & Kandlikar, Milind & Ramankutty, Navin, 2020. "Power tariffs for groundwater irrigation in India: A comparative analysis of the environmental, equity, and economic tradeoffs," World Development, Elsevier, vol. 128(C).

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