Using Water Allocation in Israel as a Proxy for Imputing the Value of Agricultural Amenities
Yerushalmi, Erez (2018) Using Water Allocation in Israel as a Proxy for Imputing the Value of Agricultural Amenities. Ecological Economics, 149. pp. 12-20. ISSN 09218009 (ISSN)
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Yerushalmi_2018_EE_value_of_agri_amenity_ALL_SECTIONS.pdf - Accepted Version Download (1MB) |
Abstract
This paper uses the water allocation economy in Israel as a proxy for imputing the value of agricultural amenities. A general equilibrium model is developed, and incorporates agricultural amenities as byproducts of agricultural production, water trade channels, and multiple water types. The premise is that until a decade ago, water policy in Israel was interlinked with agricultural land-use policy. Integrating a Monte-Carlo analysis, the model searches for a baseline minimum value of agricultural amenity that makes household, in the counterfactual scenario, indifferent between the administrative and market mechanisms. The minimum imputed value is around 109% agricultural output. The intuition is that the gains in economic welfare, from improved water use efficiency, are offset by the losses in social welfare due to a reduction in available agricultural amenities.
Item Type: | Article | ||||||||
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Identification Number: | https://doi.org/10.1016/j.ecolecon.2018.02.005 | ||||||||
Dates: |
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Uncontrolled Keywords: | agricultural amenities; administrative water allocation; water market; general equilibrium; Israel | ||||||||
Subjects: | CAH15 - social sciences > CAH15-02 - economics > CAH15-02-01 - economics | ||||||||
Divisions: | Faculty of Business, Law and Social Sciences > Birmingham City Business School | ||||||||
Depositing User: | Erez Yerushalmi | ||||||||
Date Deposited: | 07 Mar 2018 15:49 | ||||||||
Last Modified: | 22 Mar 2023 11:49 | ||||||||
URI: | https://www.open-access.bcu.ac.uk/id/eprint/5677 |
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