From Flow to Fortune? The Economic Impacts of Agricultural Dams

Hans Koster (), Saeed Tajrishy (), Jos Ommeren () and Mohammad Vesal ()
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Hans Koster: Vrije Universiteit Amsterdam
Saeed Tajrishy: Sharif University of Technology
Jos Ommeren: Vrije Universiteit Amsterdam
Mohammad Vesal: Sharif University of Technology

No 1719, Working Papers from Economic Research Forum

Abstract: We examine the economic effects of agricultural dams for Iran. To estimate the benefits of having a larger dam, we introduce a novel triple difference identification strategy using information on rainfed and irrigated land. The benefits for landowners and agricultural workers are captured by a range of measures (e.g. land rent, profit, agricultural output, wages). We demonstrate that increasing water volume of dams that are upstream creates substantial benefits for landowners, but not for agricultural workers. About half of agricultural dams are profitable. There are substantial economies of scale in volume of dams, but as the benefits of volume are more strongly diminishing, so benefit to cost ratios is smaller for larger dams.

Pages: 48
Date: 2024-08-20, Revised 2024-08-20
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