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Visit us on the web at: www.sponpress.com Water for Agriculture Irrigation economics in international perspective Stephen Merrett London and New York First published 2002 by Taylor & Francis 11 New Fetter Lane, London EC4P 4EE Simultaneously published in the USA and Canada by Taylor & Francis Inc 29 West 35th Street, New York, NY 10001 Taylor & Francis is an imprint of the Taylor & Francis Group This edition published in the Taylor & Francis e-Library, 2005. “To purchase your own copy of this or any of Taylor & Francis or Routledge’s collection of thousands of eBooks please go to www.eBookstore.tandf.co.uk.” © 2002 Stephen Merrett All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data Merrett, Stephen. Water for agriculture: irrigation economics in international perspective/Stephen Merrett. p. cm. Includes bibliographical references (p. 221) 1. Irrigation—Economic aspects. I. Title. HD1714 .M47 2002 333.91′3–dc21 2001049047 ISBN 0-203-30237-0 Master e-book ISBN ISBN 0-203-34613-0 (Adobe eReader Format) ISBN 0-415-25238-5 (alk. paper) ISBN 0-415-25239-3 (pbk.: alk. paper) O shabti, if (the deceased) be summoned to do any work which has to be done in the realm of the dead, to make arable the fields, to irrigate the land, or to convey sand from east to west, ‘Here I am’, you shall say, ‘I shall do it’. Spell six Egyptian Book of the Dead 1900 BCE Contents Acknowledgements vii List of abbreviations ix Units of measurement xiii 1 The global challenge 1 2 The demand for irrigation services 19 3 Irrigation service supply: the infrastructure 46 4 Irrigation service supply: operation, maintenance and management 76 5 Drainage services demand and supply 104 6 Social cost-benefit analysis for irrigation and drainage projects 126 7 Water allocation at the regional scale 153 8 Institutional economics and irrigation policy 191 Glossary 211 Bibliography 232 Index 240 Acknowledgements I wish to acknowledge the invaluable advice and commentary received on draft chapters of this book, or other forms of help, from Catherine Abbott, Stephen Allison, Jeremy Berkoff, Don Brown, Paul Burgess, Roger Calow, Felicity Chancellor, Geraldine Dalton, Tony Faint, Harald Frederiksen, Shirlee and Bruce Funk, Bob Hillier, Geoff Hodgson, Ben Hornigold and the staff of the King’s Lynn Consortium of Internal Drainage Boards (KLCIDB) in King’s Lynn, Peter Howsam, Clare Johnson, Melvyn Kay, Jacob Kijne, Peter Lee, Alan MacDonald, Jennifer McKay, Andrew McKenzie, John Miller, Max Neutze, Chris Perry, Tony Rayner, Jean-Jacques Schul, Benu Schneider, John Skutsch, Laurence Smith, Caroline Sullivan, David Sutherland, Julie Trottier and Sally Watson, and from Bill, Gina, Beverley and Gareth at Keveral Farm. Special acknowledgement is due to Laurence Smith, who wrote the Lower Indus case study in Chapter 5 and to David Scarpa for extended commentary on the West Bank case study in Chapter 7. Once more it gives me great pleasure to acknowledge my debt to Professor Tony Allan and to the staff and students of the University of London’s School of Oriental and African Studies where I am a Research Associate. Finally I wish to thank my fellow members of the British National Committee of the International Commission on Irrigation and Drainage; it was their invitation to me to join the Committee and my subsequent exposure to the irrigation community in the UK and internationally that first led me to decide to write this book. Permission has been kindly granted for the use of copyright material in the following cases: Blomqvist, A. (1996) Food and Fashion: Water Management and Collective Action among Irrigation Farmers and Textile Industrialists in South India, Linköping: University of Linköping, for Figure 1.2. Kemper, K. (1996) The Cost of Free Water: Water Resources Allocation and Use in the Curu Valley, Ceará, Northeast Brazil, Linköping: University of Linköping, for Figure 2.2. viii Merrett, S. (1999) ‘The political economy of water abstraction charges’, Review of Political Economy 11, 4:431–42 (www.tandf.co.uk), for material contained in sections 4.4 and 4.5. Schul, J.-J. (1999) An Evaluation Study of 17 Water Projects Located around the Mediterranean Financed by the European Investment Bank , Luxembourg: EIB, for Table 3.8. King’s Lynn Consortium of Internal Drainage Boards for Figure 5.1. King’s Lynn Consortium of Internal Drainage Boards (1994) Defenders of Our Low Land Environment: the Story of the King’s Lynn Consortium of Internal Drainage Boards, King’s Lynn: KLCIDB, for Figure 5.2. Chancellor, F., Lawrence, P. and Atkinson, E. (1996) A Method for Evaluating the Economic Benefit of Sediment Control in Irrigation Systems, Wallingford: HR Wallingford and DFID, for Figure 6.3. Shapland, G. (1997) Rivers of Discord: International Water Disputes in the Middle East, London: Hurst, for Figure 7.1. Abbreviations Abbreviations used in equations ′ a small change (or difference) AOC average overhead cost B value of a project’s incremental real output B* discounted value of a project’s incremental real output C value of a project’s incremental real costs C* discounted value of a project’s incremental real costs d discount rate e elasticity of demand E efficiency G gross margin g gradient of a function h half-life of a discounted net benefit stream i proportionate rate of increase I gross sales income, turnover K total cost of the base supply L output quantity n number N value of a project’s net benefits N* discounted value of a project’s net benefits P price Q quantity R net irrigation requirements S base supply b S field supply f t a given year
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