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Valuation of Irrigation Water: A Chance-Constrained Programming Approach

확률제약 계획모형법을 이용한 농업용수의 경제적 가치 평가

  • Kwon, Oh-Sang (Dept. of Ag. Economics & Rural Development, Seoul National Univ.) ;
  • Lee, Tae-Ho (Dept. of Ag. Economics & Rural Development, Seoul National Univ.) ;
  • Heo, Jeong-Hoi (Korea Rural Economic Institute)
  • 권오상 (서울대학교 농경제사회학부, 농업생명과학연구원) ;
  • 이태호 (서울대학교 농경제사회학부, 농업생명과학연구원) ;
  • 허정회 (한국농촌경제연구원)
  • Published : 2009.04.30

Abstract

This study estimates the value of irrigation water in Korea using an economic programming model that is constructed with all the resource endowment constraints, technology restrictions and policy variables. The variability and uncertainty of water resource endowment are incorporated into the model through the chance-constrained technique. Solving the profit maximization problems with gradually reduced water endowments, we derive a series of shadow values of irrigation water. It has been found that uncertainty in water supply raises the damage from water loss, and the marginal damage increases in water loss.

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