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\hypersetup{pdftitle={Factors Affecting the Price of Irrigation Water from Depleting Groundwater Resources in Pistachio Production},pdfauthor={Tinoush Jamali Jaghdani, Bernhard Brümmer},pdfsubject={Tropentag 2010: Abstract},pdfkeywords={Iran, pistachio, Rafsanjan, spatial effect, water price, water quality},pdfpagemode=None,colorlinks=true}
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\parbox[b]{13.4cm}{\centering \large{\textbf{Tropentag, September 14-16, 2010, Zurich}}\\[1ex] \Large{``World Food System  ---\\A Contribution from Europe''\\[2ex]}}
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\Large{\textbf{Factors Affecting the Price of Irrigation Water from Depleting Groundwater Resources in Pistachio Production\footnote{\textbf{Contact Address:} Tinoush Jamali Jaghdani, Georg-August Universität Göttingen, Department of Agricultural Economics and Rural Development, Platz der Göttinger Sieben 5, D-37073~Göttingen, Germany, \mbox{e-mail}: \email{tjamali@gwdg.de}}\\[0.8ex]}}
\normalsize{\textsc{Tinoush Jamali Jaghdani$^{1}$, Bernhard Brümmer$^{2}$}}
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\begin{itemize*}
\item[]{\small{\textit{$^{1}$Georg-August Universität Göttingen, Department of Agricultural Economics and Rural Development, Germany}}}
\item[]{\small{\textit{$^{2}$Georg-August-Universität Göttingen, Department of Agricultural Economics and Rural Development, Germany}}}
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\index[author]{Jamali Jaghdani, Tinoush}
\index[author]{Brümmer, Bernhard}
\begin{center}
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\textbf{Abstract}
\begin{abstract}
\normalsize{
In the last half of the century, numerous studies have been conducted on the economic aspects of groundwater extraction as a typical common property resource with attention being given to aquifers and their structure. Considering the spatial affect of water users on each other is a new growing front in groundwater economics. However, the market price for groundwater resources which is used in the irrigation of food crops is not available most of the time due to the nature of this resource and the non availability of markets. Thus, analysis of the nature and price of water in the few available water markets is of interest. In this study, we focused on factors affecting the price of water in the Rafsanjan aquifer in the south eastern part of Iran which is almost fully devoted to pistachio production. In this study, 52 water pumping units were randomly selected out of 1400 wells. There is a limited spot water market available among those well owners and farmers who are categorised as smallholders. The spot market price was quoted among 39 water pumping units. In the first step, a simple log"=linear regression was checked to identify possible factors affecting the available water price for summer 2008. Water quality, water flow rate and costs borne by farmers on each cubic metre of pumped water for operation as well as maintenance of the pumps were estimated as significant factors. Area covered by each pump, number of people owning each pump and the technical aspects of the pumps were not significant. In the next step, we have checked whether the price of water in neighbouring wells affects the price, although no water trade is possible among pumps (spatial effect). Visual inspection seems to suggest that some clusters in the water price around pumps exist; however, the Moran test on the spatial lag and residual was insignificant. The results show that both quality and quantity affect the price. In spite of the wide range of water quality, the price elasticity of water with respect to water quantity is two times larger than with respect to the quality.}

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\noindent \textbf{Keywords:} Iran, pistachio, Rafsanjan, spatial effect, water price, water quality
\index[key]{Iran}
\index[key]{Pistachio}
\index[key]{Rafsanjan}
\index[key]{Spatial!effect}
\index[key]{Water!price}
\index[key]{Water!quality}
\end{document}