An Economic Analysis of Supplementary Irrigation in Skane

Anderson Jr., R.J. (1981). An Economic Analysis of Supplementary Irrigation in Skane. IIASA Research Report. IIASA, Laxenburg, Austria: RR-81-033

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Abstract

This report analyzes the water demand for supplementary irrigation in Skane. It attempts to answer questions raised by previous IIASA studies: what is the potential demand for irrigation water at current crop prices and irrigation costs; what effect would this have on the crop market, and how would the changed market subsequently effect the demand for irrigation; and what effect would a significant increase in the cost of irrigation have on the quantity of water used. The studies are based on table potatoes and sugar beets. The analysis shows that irrigation demands may be as great as those calculated using simple water balance models, and that the potential water supply and demand could become seriously out of balance. It is also shown that irrigation would have little effect on the crop market, and water would be required to be reallocated. Finally, it is shown that if farmers were charged the opportunity cost of the water resources they used, supply and demand could be brought back into balance. The report concludes that agricultural demand is an important, possibly the critical, factor in future planning and management of the water supply system in this region.

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