Economic evaluation of small multi-purpose ponds in the Zhanghe irrigation system, China

Mushtaq, Shahbaz and Dawe, David and Hafeez, Mohsin (2007) Economic evaluation of small multi-purpose ponds in the Zhanghe irrigation system, China. Agricultural Water Management, 91 (1-3). pp. 61-70. ISSN 0378-3774


Ponds are small reservoirs that allow farmers in irrigated areas to capture rainfall, store surplus water from irrigation canals, and conserve water from other sources. Though ponds have been used widely in irrigated areas for many years, recent increases in the construction of ponds due to growing water shortages and government policies generate interest in understanding effectiveness of investing in ponds. We examine the economics of small,
medium, and large ponds. All sizes of ponds are profitable with healthy internal rates of return, positive net present values and benefit–cost ratios larger than 1. However, when the imputed cost of family labor is included, small and medium ponds fail to justify investment. Overall, larger ponds offer higher economic benefits than small and medium ponds. Efficiency gains can be achieved by constructing large ponds, which are also economically viable.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Author version not held.
Faculty / Department / School: Historic - Faculty of Engineering and Surveying - No Department
Date Deposited: 13 May 2010 01:59
Last Modified: 02 Jul 2013 23:47
Uncontrolled Keywords: Water ponds; Cost–benefit analysis; Water scarcity
Fields of Research : 05 Environmental Sciences > 0502 Environmental Science and Management > 050204 Environmental Impact Assessment
14 Economics > 1402 Applied Economics > 140205 Environment and Resource Economics
Socio-Economic Objective: D Environment > 96 Environment > 9609 Land and Water Management > 960999 Land and Water Management of Environments not elsewhere classified
Identification Number or DOI: 10.1016/j.agwat.2007.04.006

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