Analysis of the Economic and Welfare Impacts of Establishing Irrigation Water Market in Qazvin Province

In this study economic and welfare impacts of establishing irrigation water market in Qazvin province as well as potentiality of irrigation water transfer under stress irrigation conditions in the cities of Qazvin province were analyzed. To achieve the above objectives, Positive Mathematical Programming model and State Wide Agricultural Production functions were used. To achieve applicable results, the production function with a constant elasticity of substitution and cost function with an exponential form were included into the Positive Mathematical Programming model was imported. The study data for the year 2011-2012 was collected by asking the relevant offices in each city of Qazvin province. The proposed model was solved in six successive stages using the GAMS software. After solving the model, amount changes in the area of irrigated crops, farmer's gross profit and labor surplus under the two conditions of “existence of water market” and “lack of water market “at the regional level were calculated. The results showed that establishing irrigation water market increases total irrigated lands for 1/2 percent, total farmer’s gross profit for 1/86 percent and total labor force employed in agriculture for 1/8 percent in the province. Ultimately, considering the supportive and constructive role of regional water markets, it is recommended to provide necessary conditions and tools to establish an optimal use of such a mechanism associated with the type of market in Qazvin province