The economywide impacts of increasing water security through policies on agricultural production: The case of rice and sugarcane in Pakistan
Increasing demand for water juxtaposed with shrinking supplies will require a transfer of water resources out of agriculture into the domestic, industrial, and ideally environmental sectors. To examine the potential of policies to facilitate a release of water from agriculture, this paper uses IFPRI...
| Autores principales: | , , , , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
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International Food Policy Research Institute
2023
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| Acceso en línea: | https://hdl.handle.net/10568/137418 |
| _version_ | 1855513916368486400 |
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| author | Davies, Stephen Akram, Iqra Ali, Muhammad Tahir Hafeez, Mohsin Ringler, Claudia |
| author_browse | Akram, Iqra Ali, Muhammad Tahir Davies, Stephen Hafeez, Mohsin Ringler, Claudia |
| author_facet | Davies, Stephen Akram, Iqra Ali, Muhammad Tahir Hafeez, Mohsin Ringler, Claudia |
| author_sort | Davies, Stephen |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Increasing demand for water juxtaposed with shrinking supplies will require a transfer of water resources out of agriculture into the domestic, industrial, and ideally environmental sectors. To examine the potential of policies to facilitate a release of water from agriculture, this paper uses IFPRI’s Computable General Equilibrium Model with a water extension, CGE-W, to assess the impact of commodity taxes on two highly water consumptive crops, rice and sugarcane, on water consumption and the overall economy. We find that land use grows by 1.56 million acres overall when the tax is imposed on both commodities, while 3.2-million-acre feet (MAF) of consumed water, equivalent to 6.35 MAF of water withdrawals, are released from agriculture. These outcomes are due to sugarcane’s reduced use of land over two cropping seasons and significant changes in cropping patterns. The study also examined releases of water from other possible policy measures and found that an even tax rate of 30% on sugarcane, rice and cotton yields 8.73 MAF of water from agriculture. However, with a hotter, drier climate virtually all these releases of water disappear because water must stay in agriculture due to higher evaporation and less precipitation, which raises irrigation demands. The needed policies will go beyond just taxation and might include changing cropping patterns and irrigation practices, as well as development of drought resistant varieties. Other approaches, such as buying tubewells from farmers, and developing markets for nonagricultural purchases of water, may have a role. The role of international trade in sugar and rice is shown to be significant and should be considered further in these analyses. |
| format | Artículo preliminar |
| id | CGSpace137418 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2023 |
| publishDateRange | 2023 |
| publishDateSort | 2023 |
| publisher | International Food Policy Research Institute |
| publisherStr | International Food Policy Research Institute |
| record_format | dspace |
| spelling | CGSpace1374182025-12-02T21:03:24Z The economywide impacts of increasing water security through policies on agricultural production: The case of rice and sugarcane in Pakistan Davies, Stephen Akram, Iqra Ali, Muhammad Tahir Hafeez, Mohsin Ringler, Claudia water security policies agricultural production rice sugar cane water conservation water allocation water demand climate change land tax farmland computable general equilibrium models Increasing demand for water juxtaposed with shrinking supplies will require a transfer of water resources out of agriculture into the domestic, industrial, and ideally environmental sectors. To examine the potential of policies to facilitate a release of water from agriculture, this paper uses IFPRI’s Computable General Equilibrium Model with a water extension, CGE-W, to assess the impact of commodity taxes on two highly water consumptive crops, rice and sugarcane, on water consumption and the overall economy. We find that land use grows by 1.56 million acres overall when the tax is imposed on both commodities, while 3.2-million-acre feet (MAF) of consumed water, equivalent to 6.35 MAF of water withdrawals, are released from agriculture. These outcomes are due to sugarcane’s reduced use of land over two cropping seasons and significant changes in cropping patterns. The study also examined releases of water from other possible policy measures and found that an even tax rate of 30% on sugarcane, rice and cotton yields 8.73 MAF of water from agriculture. However, with a hotter, drier climate virtually all these releases of water disappear because water must stay in agriculture due to higher evaporation and less precipitation, which raises irrigation demands. The needed policies will go beyond just taxation and might include changing cropping patterns and irrigation practices, as well as development of drought resistant varieties. Other approaches, such as buying tubewells from farmers, and developing markets for nonagricultural purchases of water, may have a role. The role of international trade in sugar and rice is shown to be significant and should be considered further in these analyses. 2023-12-31 2024-01-09T16:56:07Z 2024-01-09T16:56:07Z Working Paper https://hdl.handle.net/10568/137418 en https://doi.org/10.1007/978-3-030-65679-9_7 https://doi.org/10.1007/978-3-030-65679-9_15 http://hdl.handle.net/10986/31160 https://doi.org/10.2499/p15738coll2.134349 Open Access application/pdf International Food Policy Research Institute Davies, Stephen; Akram, Iqra; Ali, Muhammad Tahir; Hafeez, Mohsin; and Ringler, Claudia. 2023. The economywide impacts of increasing water security through policies on agricultural production: The case of rice and sugarcane in Pakistan. IFPRI Discussion Paper 2226. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.137073. |
| spellingShingle | water security policies agricultural production rice sugar cane water conservation water allocation water demand climate change land tax farmland computable general equilibrium models Davies, Stephen Akram, Iqra Ali, Muhammad Tahir Hafeez, Mohsin Ringler, Claudia The economywide impacts of increasing water security through policies on agricultural production: The case of rice and sugarcane in Pakistan |
| title | The economywide impacts of increasing water security through policies on agricultural production: The case of rice and sugarcane in Pakistan |
| title_full | The economywide impacts of increasing water security through policies on agricultural production: The case of rice and sugarcane in Pakistan |
| title_fullStr | The economywide impacts of increasing water security through policies on agricultural production: The case of rice and sugarcane in Pakistan |
| title_full_unstemmed | The economywide impacts of increasing water security through policies on agricultural production: The case of rice and sugarcane in Pakistan |
| title_short | The economywide impacts of increasing water security through policies on agricultural production: The case of rice and sugarcane in Pakistan |
| title_sort | economywide impacts of increasing water security through policies on agricultural production the case of rice and sugarcane in pakistan |
| topic | water security policies agricultural production rice sugar cane water conservation water allocation water demand climate change land tax farmland computable general equilibrium models |
| url | https://hdl.handle.net/10568/137418 |
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