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Water Resour Res. 2014 Aug;50(8):6679-6695. doi: 10.1002/2014WR015704. Epub 2014 Aug 18.

Reimagining cost recovery in Pakistan's irrigation system through willingness-to-pay estimates for irrigation water from a discrete choice experiment.

Water resources research

Andrew Reid Bell, M Azeem Ali Shah, Patrick S Ward

Affiliations

  1. International Food Policy Research Institute Washington, D.C., USA.
  2. International Water Management Institute Lahore, Pakistan.
  3. International Food Policy Research Institute New Delhi, India.

PMID: 25552779 PMCID: PMC4274959 DOI: 10.1002/2014WR015704

Abstract

It is widely argued that farmers are unwilling to pay adequate fees for surface water irrigation to recover the costs associated with maintenance and improvement of delivery systems. In this paper, we use a discrete choice experiment to study farmer preferences for irrigation characteristics along two branch canals in Punjab Province in eastern Pakistan. We find that farmers are generally willing to pay well in excess of current surface water irrigation costs for increased surface water reliability and that the amount that farmers are willing to pay is an increasing function of their existing surface water supply as well as location along the main canal branch. This explicit translation of implicit willingness-to-pay (WTP) for water (via expenditure on groundwater pumping) to WTP for reliable surface water demonstrates the potential for greatly enhanced cost recovery in the Indus Basin Irrigation System via appropriate setting of water user fees, driven by the higher WTP of those currently receiving reliable supplies.

Keywords: Pakistan; discrete choice experiment; irrigation; water user fees

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