Water demand management under alternative institutionnal arrangements (A case study of Coastal Lands of Yengejeh Dam)

In the current situation one of the most important issues in environmental economics, management and optimal operation of its resources. Water demand management have been concerned by economic planners as a new approach in environmental economics. This study aims to investigate the management of water demand in different product markets in downstream lands of Yengejeh Dam in Neyshabur. This is an exploratory study in nature which was conducted through a questionnaire survey in 2015–2016. The population of this research is all farmers who use the water of Yengejeh dam to irrigate their lands. Using Cochran formula, 139 barley farmers selected as the sample of this research randomly. A scenario of increasing the elasticity of product demand in resource allocation in the competitive and monopolar water market was developed by assimilation algorithm in the studied region. According to the market situation of water in the region which is almost similar to monopoly water market, the results suggest that if farmers culture crops such as cotton, sunflower, cucumber, tomatoes, peas, red beans and cumin instead of barley that their prices were higher than the price of barley, amount of product produced per hectare of lands near water dam, create and supply costs per cubic meter of water, agricultural investment per meter of water flow to the farm, remaining amount of water per meter water channel, amount of water delivered to each hectare of land, opportunity rent per hectare of land reduced.