What is it about?
Pakistan's canal irrigation network supports millions of farmers. However, the allocation of water in this system is inefficient as there is no market for water. We test for the efficiency of allocation in this system and find that allocation is inefficient. We find that an efficient allocation would increase system net revenue by 13%.
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Why is it important?
Understanding the efficiency of allocation in a canal irrigation system as large as Pakistan's is crucial to improving welfare. The goal must be a market for irrigation water that allows farmers to buy and sell water.
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This page is a summary of: Agricultural water allocation efficiency in a developing country canal irrigation system, Environment and Development Economics, June 2017, Cambridge University Press,
DOI: 10.1017/s1355770x17000171.
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