loading page

Financial feasibility of water conservation in agriculture
  • +7
  • Christian Siderius,
  • Hester Biemans,
  • Declan Conway,
  • Walter Willem Immerzeel,
  • Jonas Jaegermeyr,
  • Bashir Ahmad,
  • Petra J.G.J. Hellegers,
  • Christian Siderius,
  • Jonas Jaegermeyr,
  • Petra J.G.J. Hellegers
Christian Siderius
London School of Economics

Corresponding Author:[email protected]

Author Profile
Hester Biemans
Alterra - Wageningen UR, Wageningen University & Research
Author Profile
Declan Conway
London School of Economics, London School of Economics
Author Profile
Walter Willem Immerzeel
Utrecht University, Utrecht University
Author Profile
Jonas Jaegermeyr
Unknown
Author Profile
Bashir Ahmad
Pakistan Agriculture Research Council, Pakistan Agriculture Research Council
Author Profile
Petra J.G.J. Hellegers
Agricultural Economics Research Institute (LEI)
Author Profile
Christian Siderius
London School of Economics

Corresponding Author:[email protected]

Author Profile
Jonas Jaegermeyr
NASA Goddard Institute for Space Studies
Author Profile
Petra J.G.J. Hellegers
Wageningen University & Research
Author Profile

Abstract

Global water use for food production needs to be reduced to remain within planetary boundaries, yet the financial feasibility of crucial measures to reduce water use is poorly quantified. Here, we introduce a novel method to compare the costs of water conservation measures with the added value that reallocation of water savings might generate if used for expansion of irrigation. Based on detailed water accounting through the use of a high-resolution hydrology-crop model, we modify the traditional cost curve approach with an improved estimation of demand, increasing marginal cost per water conservation measure combination and add a correction to control for impacts on downstream water availability. We apply the method to three major river basins in the Indo-Gangetic plain (Indus, Ganges and Brahmaputra), a major global food producing region but increasingly water stressed. Our analysis shows that at basin level only about 10% (Brahmaputra) to just over 20% (Indus and Ganges) of potential water savings would be realised; the equilibrium price for water is too low to make the majority of water conservation measures cost effective. The associated expansion of irrigated area is moderate, about 7% in the Indus basin, 5% in the Ganges and negligible in the Brahmaputra, but farmers’ gross profit increases more substantially, by 11%. Increasing the volumetric cost of irrigation water influences supply and demand in a similar way and has little influence on water reallocation. Controlling for the impact on return flows is important and more than halves the amount of water available for reallocation.
Mar 2021Published in Earth's Future volume 9 issue 3. 10.1029/2020EF001726