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1 Agricultural Water Allocation Efficiency in a Developing Country Canal Irrigation System Agha Ali Akram Evidence Action

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Page 1: Agricultural Water Allocation Efficiency in a Developing

1

Agricultural Water Allocation Efficiency in a

Developing Country Canal Irrigation System

Agha Ali Akram

Evidence Action

Page 2: Agricultural Water Allocation Efficiency in a Developing

Research question:

“Is water being allocated efficiently in canal irrigations systems?”

Data:

Doesn’t exist!

Irrigation system in Pakistan (Southern Punjab)

Two vital bits of data:

Production survey (post-season)

Water measurement survey (in-season)

Agricultural Water Allocation Efficiency Agha Ali Akram

Preview

2

Page 3: Agricultural Water Allocation Efficiency in a Developing

Method:

Economic tests of efficiency in allocation:

Using traditional measures

Improved measures (volumetric)

Adding (some) nuance (conveyance efficiency plays a role)

Results:

Allocation is inefficient (even when adjusting for conveyance

efficiency)

Re-allocation provides substantial gains (13% – 14%)

Agricultural Water Allocation Efficiency Agha Ali Akram

Preview

3

Page 4: Agricultural Water Allocation Efficiency in a Developing

Hydro-economic models are poorly founded

This work provides a firm basis for basin-scale modeling

Improved climate change analysis

Agha Ali Akram

Why do this?

4

Agricultural Water Allocation Efficiency

Page 5: Agricultural Water Allocation Efficiency in a Developing

Location: large scale irrigation works in Pakistan

Hakra Branch Canal

Chose three secondary canals and a majority of outlets in each of the

secondary canals

Agha Ali Akram

Context

5

Agricultural Water Allocation Efficiency

Page 6: Agricultural Water Allocation Efficiency in a Developing

Agha Ali Akram

Context

6

Agricultural Water Allocation Efficiency

Indus River

Himalayas

Canal Command

Arabian Sea

Page 7: Agricultural Water Allocation Efficiency in a Developing

Agha Ali Akram

Context

7

3R Distributary

6R Distributary

9R Distributary

Hakra Branch Canal – what it looks like

Agricultural Water Allocation Efficiency

Page 8: Agricultural Water Allocation Efficiency in a Developing

Agha Ali Akram

Context

8

Agricultural Water Allocation Efficiency

Page 9: Agricultural Water Allocation Efficiency in a Developing

Agha Ali Akram

Context

9

Agricultural Water Allocation Efficiency

Page 10: Agricultural Water Allocation Efficiency in a Developing

Agha Ali Akram

Context

10

Agricultural Water Allocation Efficiency

Page 11: Agricultural Water Allocation Efficiency in a Developing

Agha Ali Akram

Context

11

Agricultural Water Allocation Efficiency

Institutionally, controlled by the irrigation department up to outlet

Farmers manage tertiary canals

Discharge in the primary canal means discharge in the tertiary canals

Warabandi – fixed schedule of gate openings and closings

Page 12: Agricultural Water Allocation Efficiency in a Developing

In-season water measurement:

Standard stream discharge measurement protocols

Measured discharge at outlets

Sample of 200 outlets across three secondary channels

“Traditional” measures

Agha Ali Akram

Data

12

Agricultural Water Allocation Efficiency

Page 13: Agricultural Water Allocation Efficiency in a Developing

Post season production survey:

Followed up with post-season agricultural production survey

Sampled 363 farmers

Sampled farmer at head middle and tail reaches (of both primary

and secondary canals)

Use of GPS to match farmers to outlets

Agha Ali Akram

Data

13

Agricultural Water Allocation Efficiency

Page 14: Agricultural Water Allocation Efficiency in a Developing

What does economic theory tell us?

Basic rule that emerges:

How do we test this?

One idea: estimate a concave form for the net benefits function

If we are able to detect a concave form, it implies inefficient

allocation

Assume: irrigation water received is exogenous

Agha Ali Akram

Theory

14

Agricultural Water Allocation Efficiency

𝜕𝐵1 𝑤1

𝜕𝑤1=

𝜕𝐵2 𝑤2

𝜕𝑤2

Page 15: Agricultural Water Allocation Efficiency in a Developing

Agha Ali Akram

The Test

15

$

W 0 WL WH

Agricultural Water Allocation Efficiency

Page 16: Agricultural Water Allocation Efficiency in a Developing

Agha Ali Akram

Results

16

Robust standard errors in parentheses

*** p<0.01, ** p<0.05, * p<0.1

Some evidence on exogeneity of canal water

Agricultural Water Allocation Efficiency

(1) (2) (3) (4) (5) (6)

VARIABLES HHSize Adults Working

Members

HeadOf

HH

Education

Sons

Educated

Daughters

Educated

CanalWater/Acre -0.0142 -0.0123 0.0122 -0.00106 0.000347 -0.000734

(0.0589) (0.0416) (0.0193) (0.0260) (0.00113) (0.00300)

Constant 9.492*** 6.104*** 2.400*** 3.311*** 0.959*** 0.950***

(0.491) (0.306) (0.151) (0.196) (0.0129) (0.0208)

Observations 334 334 334 334 334 334

R-squared 0.000 0.000 0.001 0.000 0.000 0.000

Page 17: Agricultural Water Allocation Efficiency in a Developing

Agha Ali Akram

Results

17

Robust standard errors in parentheses

*** p<0.01, ** p<0.05, * p<0.1

Some evidence on exogeneity of canal water

Agricultural Water Allocation Efficiency

(7) (8) (9) (10) (11)

VARIABLES Management

Experience

(years)

Overall

Agricultural

Experience

(years)

Contact

With

Agricultural

Extension

Formal

Sector

Loans

Winter

Crop

BasedOn

Summer

Outcomes

CanalWater/Acre -0.0566 -0.269 0.00271 -0.00211 0.000256

(0.126) (0.172) (0.00567) (0.00439) (0.00575)

Constant 18.61*** 30.14*** 0.418*** 0.219*** 0.487***

(0.958) (1.181) (0.0422) (0.0344) (0.0431)

Observations 334 334 334 334 334

R-squared 0.001 0.010 0.001 0.001 0.000

Page 18: Agricultural Water Allocation Efficiency in a Developing

Agha Ali Akram

Results

18

Robust standard errors in parentheses

*** p<0.01, ** p<0.05, * p<0.1

Some results using “traditional” farmer reported water use measures

(1) (2) (3)

VARIABLES NR/Acre NR/Acre NR/Acre

TurnsReceived/Acre 2,008

(1,773)

(TurnsReceived/Acre) 2 88.99

(106.9)

TurnTime/Acre -0.239

(0.314)

(TurnTime/Acre) 2 7.77e-06

(7.07e-06)

Depth x Turns/Acre 342.2

(615.1)

(Depth x Turns /Acre) 2 22.83

(20.98)

Controls Yes Yes Yes

Constant 3,562 6,170 1,724

(7,645) (8,547) (7,560)

Observations 334 334 334

R-squared 0.190 0.117 0.176

Agricultural Water Allocation Efficiency

Page 19: Agricultural Water Allocation Efficiency in a Developing

Agha Ali Akram

Results

19

Some results using in-season measured farmer water use

(1) (2) (3) (4)

VARIABLES NR/Acre NR/Acre NR/Acre NR/Acre

CanalWater/Acre 1,984*** 2,280***

(666.7) (678.0)

(CanalWater/Acre)2 -52.81* -66.81**

(31.64) (31.95)

CanalWater/Acre_Spl_a_i 2,536***

(690.3)

CanalWater/Acre_Spl_a_ii -1,855**

(793.2)

CanalWater/Acre_Spl_b_i 1,425***

(381.1)

CanalWater/Acre_Spl_b_ii -2,190*

(1,216)

Controls No Yes Yes Yes

Constant 5,161 -10,872 -10,224 -8,096

(6,133) (8,882) (8,816) (8,518)

Observations 334 334 334 334

R-squared 0.169 0.197 0.188 0.196

Agricultural Water Allocation Efficiency

Robust standard errors in parentheses

*** p<0.01, ** p<0.05, * p<0.1

Page 20: Agricultural Water Allocation Efficiency in a Developing

Agha Ali Akram

Results

20

Some results using in-season measured farmer water use

Agricultural Water Allocation Efficiency

Page 21: Agricultural Water Allocation Efficiency in a Developing

Agha Ali Akram

Results

21

Some results using in-season measured farmer water use

Agricultural Water Allocation Efficiency

Page 22: Agricultural Water Allocation Efficiency in a Developing

Agha Ali Akram

Results

22

Second cut: need to account for conveyance efficiency (CE)

How is this calculated?

Primary Head Primary Tail Primary Middle

Secondary Tail

Secondary Middle

Secondary Head

Tertiary Middle Tertiary

Head

Tertiary Tail

Main Stem

Primary Canal Secondary Canal Tertiary Canal

Agricultural Water Allocation Efficiency

Page 23: Agricultural Water Allocation Efficiency in a Developing

New rule that emerges:

Must adjust water delivered for losses in canal system

Cannot rely on a simple test of concavity (non-linearity) anymore

Have to actually derive marginal net revenues and adjust for CE

Second-order polynomial is most conducive to this

Agha Ali Akram

Results

23

Agricultural Water Allocation Efficiency

𝜕𝐵1 𝑤1

𝜕𝑤1. 𝑧1 =

𝜕𝐵2 𝑤2

𝜕𝑤2. 𝑧2

Page 24: Agricultural Water Allocation Efficiency in a Developing

Agha Ali Akram

Results

24

Agricultural Water Allocation Efficiency

Page 25: Agricultural Water Allocation Efficiency in a Developing

Welfare calculation – does reallocation help?*

* Sample not representative of HBC nor other canal commands

Agha Ali Akram

Results

25

Adjustment

for

Conveyance Efficiency

Efficient Allocation

Total Net Revenues

(Rupees)

Existing Allocation

Total Net Revenues

(Rupees)

Gain

(Rupees)

Gain

(%)

Total Water

Available

(acre-inches)

Unadjusted 3143083 3649434 506351 13.87% 2437.477

CE-1 3143083 3625869 482786 13.32% 3643.949

CE-2 3143083 3606963 463880 12.86% 3679.264

CE-3 3143083 3614624 471541 13.05% 3366.882

CE-4 3143083 3606052 462969 12.84% 3393.224

Agricultural Water Allocation Efficiency

Page 26: Agricultural Water Allocation Efficiency in a Developing

Groundwater, groundwater, groundwater

Agha Ali Akram

What next?

26

Canal Water: Allocation and Adaptation

Farmer

Canal Water

Ground Water

Seepage to Ground

Evaporative Losses

Effective Canal Water

Available to Farmer

Effective Groundwater Available to

Farmer

Natural Groundwater

Recharge

The zi term from equations

Page 27: Agricultural Water Allocation Efficiency in a Developing

Groundwater, groundwater, groundwater

Agha Ali Akram

What next?

27

Single-Cell Aquifer

Seep

age

fro

m

Can

al S

egm

ent

1

Seep

age

fro

m

Can

al S

egm

ent

2

Farmer 2 Groundwater

Well

Canal Segment 1

Can

al Segmen

t 2

Crop Root Zone

Perc

ola

tio

n f

rom

Fi

eld

1

Perc

ola

tio

n f

rom

Fi

eld

2

Farmer 2 Canal Water Delivery

Farmer 2 Crops Farmer 1 Crops

Farmer 1 Canal Water Delivery

Farmer 2 Groundwater

Well

Canal Water: Allocation and Adaptation