The economywide impacts of increasing water security through policies on agricultural production: The case of rice and sugarcane in Pakistan

cg.authorship.typesCGIAR multi-centreen
cg.contributor.affiliationInternational Food Policy Research Instituteen
cg.contributor.affiliationInternational Water Management Instituteen
cg.contributor.donorCGIAR Trust Funden
cg.contributor.initiativeNEXUS Gains
cg.coverage.countryPakistan
cg.coverage.iso3166-alpha2PK
cg.coverage.regionAsia
cg.coverage.regionSouthern Asia
cg.creator.identifierStephen Davies: 0000-0003-3659-0893en
cg.creator.identifierIqra Akram: 0000-0003-3143-7769en
cg.creator.identifierAli, Muhammad Tahir: 0000-0002-9904-5473en
cg.creator.identifierMohsin Hafeez: 0000-0003-4115-2994en
cg.howPublishedGrey Literatureen
cg.identifier.doihttps://doi.org/10.2499/p15738coll2.137073en
cg.identifier.projectIFPRI - Development Strategies and Governance Uniten
cg.identifier.projectIFPRI - Natural Resources and Resilience Uniten
cg.identifier.projectIFPRI - Systems Transformation - Transformation Strategiesen
cg.identifier.publicationRankNot rankeden
cg.number2226en
cg.placeWashington, DCen
cg.reviewStatusInternal Reviewen
cg.subject.actionAreaSystems Transformation
cg.subject.impactAreaEnvironmental health and biodiversity
dc.contributor.authorDavies, Stephenen
dc.contributor.authorAkram, Iqraen
dc.contributor.authorAli, Muhammad Tahiren
dc.contributor.authorHafeez, Mohsinen
dc.contributor.authorRingler, Claudiaen
dc.date.accessioned2024-01-09T16:56:07Zen
dc.date.available2024-01-09T16:56:07Zen
dc.identifier.urihttps://hdl.handle.net/10568/137418
dc.titleThe economywide impacts of increasing water security through policies on agricultural production: The case of rice and sugarcane in Pakistanen
dcterms.abstractIncreasing demand for water juxtaposed with shrinking supplies will require a transfer of water resources out of agriculture into the domestic, industrial, and ideally environmental sectors. To examine the potential of policies to facilitate a release of water from agriculture, this paper uses IFPRI’s Computable General Equilibrium Model with a water extension, CGE-W, to assess the impact of commodity taxes on two highly water consumptive crops, rice and sugarcane, on water consumption and the overall economy. We find that land use grows by 1.56 million acres overall when the tax is imposed on both commodities, while 3.2-million-acre feet (MAF) of consumed water, equivalent to 6.35 MAF of water withdrawals, are released from agriculture. These outcomes are due to sugarcane’s reduced use of land over two cropping seasons and significant changes in cropping patterns. The study also examined releases of water from other possible policy measures and found that an even tax rate of 30% on sugarcane, rice and cotton yields 8.73 MAF of water from agriculture. However, with a hotter, drier climate virtually all these releases of water disappear because water must stay in agriculture due to higher evaporation and less precipitation, which raises irrigation demands. The needed policies will go beyond just taxation and might include changing cropping patterns and irrigation practices, as well as development of drought resistant varieties. Other approaches, such as buying tubewells from farmers, and developing markets for nonagricultural purchases of water, may have a role. The role of international trade in sugar and rice is shown to be significant and should be considered further in these analyses.en
dcterms.accessRightsOpen Access
dcterms.audienceAcademicsen
dcterms.available2023en
dcterms.bibliographicCitationDavies, Stephen; Akram, Iqra; Ali, Muhammad Tahir; Hafeez, Mohsin; and Ringler, Claudia. 2023. The economywide impacts of increasing water security through policies on agricultural production: The case of rice and sugarcane in Pakistan. IFPRI Discussion Paper 2226. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.137073.en
dcterms.extent51 p.en
dcterms.isPartOfIFPRI Discussion Paperen
dcterms.issued2023-12-31en
dcterms.languageen
dcterms.licenseOther
dcterms.publisherInternational Food Policy Research Instituteen
dcterms.relationhttps://doi.org/10.1007/978-3-030-65679-9_7en
dcterms.relationhttps://doi.org/10.1007/978-3-030-65679-9_15en
dcterms.relationhttp://hdl.handle.net/10986/31160en
dcterms.relationhttps://doi.org/10.2499/p15738coll2.134349en
dcterms.replaceshttps://ebrary.ifpri.org/digital/collection/p15738coll2/id/137073en
dcterms.subjectwater securityen
dcterms.subjectpoliciesen
dcterms.subjectagricultural productionen
dcterms.subjectriceen
dcterms.subjectsugar caneen
dcterms.subjectwater conservationen
dcterms.subjectwater allocationen
dcterms.subjectwater demanden
dcterms.subjectclimate changeen
dcterms.subjectland taxen
dcterms.subjectfarmlanden
dcterms.subjectcomputable general equilibrium modelsen
dcterms.typeWorking Paper

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