Groundwater Valuation by Hedonic Model Land Price Approach

Water as a production input, like other inputs has demand and thereby price. The applicants of this important source buy water with considering the kind of its consumption and the values of its output. The aim of this paper is to determine the value of groundwater irrigation water and study the influence of water values on agricultural lands values in Meybod County, Iran. To find the market price of irrigation water in agricultural sector the Hedonic price analysis on agricultural lands sales was used. This method is used when the unit price of water is not distinguishable in market place. Therefore, the cluster sampling method is used, some 93 questionnaires were completed for determining the values of water and land in 2006-2007. The results show that the Spring kind of water source has not influence on water and land values. On the bases of kinds and qualities, different lands take different values, also water value is related to the soil quality and water value is higher in soils with highest quality.