Estimate the economic value of water in Pistachioproduction (case study; Boein Zahra city)

ABSTRACT: The most parts of Iran are facing with increasing demand for water in agriculture that the main reason is significant difference between cost of water and received prices by farmers. For confronting with this challenge is essential that actual price of Pistachio are determined by using of economic principles and according to estimate of economic value of water in Pistachio production as one of the important export products. The main purpose objective of this research is determination of the economic value of water by using of production functions among of Pistachio producers in Boein Zahra city. The results of the estimation of production functions show that inputs such as water, manpower, and chemicals materials had positive effect on production. According to achieved coefficients, increasing 5 percent in using of production inputs especially manpower has caused to increase production amount of 1.6 percent. The final value of each cubic meter of used water in Pistachio producing is obtained 214.6 Rails based on prices of 1390, while only 28.6 Rails per cubic meter be received from manufacturers. Results of water demand function has shown no significant effect of price on demand. But increasing product prices can lead to increasing demand for water.