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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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
Identification Number:	10.1016/j.ecolecon.2018.02.005
Dates:	Date Event 11 February 2018 Accepted 9 March 2018 Published Online July 2018 Published
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 > College of Accountancy, Finance and Economics Faculty of Business, Law and Social Sciences > College of Business, Digital Transformation & Entrepreneurship
Depositing User:	Erez Yerushalmi
Date Deposited:	07 Mar 2018 15:49
Last Modified:	20 Jun 2024 12:06
URI:	https://www.open-access.bcu.ac.uk/id/eprint/5677

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