Estimation of water demand and determination of water price in Kerman province

This study was performed to determine the price elasticity of water demand, value of water marginal productivity in corn production, final price of water and comparison with value of water marginal productivity. Data were collected by using of Multi-stage cluster sampling method through interview with farmers and questionnaire in Bardsir city. Results indicated that in center-pivot irrigation method marginal productivity of 1m3 of water and value of marginal product were 0.26kg and 986 Rials and in basin irrigation system, Productivity of 1m3 of water and value of marginal product were 0.2kg and 371 Rials. Price elasticity of water demand in center-pivot and basin method was calculated -1.97 and -1.57 respectively. With regard to the elasticity of water demand, it can be said that water price has effective rule in rate application. Because of conservation of runoff water network system, decrease of irrigation water demand and proper management is necessary.