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Economic valuation of irrigation water in south-eastern Mexico

Author

Listed:
  • Homero Yedra
  • M. Azahara Mesa-Jurado
  • Carlos A. López-Morales
  • Maria M. Castillo

Abstract

Ongoing discussion on new water legislation in Mexico emphasizes the need to consider the economic dimension of water. Using the net income change method, in this article the economic value of irrigation water is estimated for banana cultivation in the state of Tabasco, which is a tropical region with high rainfall. The main results show that irrigated farms are 34–37% more profitable than rainfed ones with similar revenue levels, with corresponding water values of 1.48–1.75 USD/m3. These values are a proxy of farmers’ maximum willingness to pay, and can be used to inform tariff reform.

Suggested Citation

  • Homero Yedra & M. Azahara Mesa-Jurado & Carlos A. López-Morales & Maria M. Castillo, 2016. "Economic valuation of irrigation water in south-eastern Mexico," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 32(6), pages 931-943, November.
    • Handle: RePEc:taf:cijwxx:v:32:y:2016:i:6:p:931-943
    DOI: 10.1080/07900627.2015.1133404
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    References listed on IDEAS

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    1. Hussain, I. & Raschid, L. & Hanjra, M. A. & Marikar, F. & van der Hoek, W., 2001. "A Framework for analyzing socioeconomic, health and environmental impacts of wastewater use in agriculture in developing countries," IWMI Working Papers H028996, International Water Management Institute.
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    1. Wahib Al-Qubatee & Petra Hellegers & Henk Ritzema, 2019. "The Economic Value of Irrigation Water in Wadi Zabid, Tihama Plain, Yemen," Sustainability, MDPI, vol. 11(22), pages 1-19, November.
    2. Jones, Kelly W. & Mayer, Alex & Von Thaden, Juan & Berry, Z. Carter & López-Ramírez, Sergio & Salcone, Jacob & Manson, Robert H. & Asbjornsen, Heidi, 2020. "Measuring the net benefits of payments for hydrological services programs in Mexico," Ecological Economics, Elsevier, vol. 175(C).

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