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_US
cg.contributor.affiliationInternational Food Policy Research Instituteen_US
cg.contributor.affiliationInternational Water Management Instituteen_US
cg.contributor.donorCGIAR Trust Funden_US
cg.contributor.initiativeNEXUS Gainsen_US
cg.coverage.countryPakistanen_US
cg.coverage.iso3166-alpha2PKen_US
cg.coverage.regionAsiaen_US
cg.coverage.regionSouthern Asiaen_US
cg.creator.identifierStephen Davies: 0000-0003-3659-0893en_US
cg.creator.identifierIqra Akram: 0000-0003-3143-7769en_US
cg.creator.identifierClaudia Ringler: 0000-0002-8266-0488en_US
cg.creator.identifierMohsin Hafeez: 0000-0003-4115-2994en_US
cg.howPublishedGrey Literatureen_US
cg.identifier.doihttps://doi.org/10.2499/p15738coll2.137073en_US
cg.identifier.projectIFPRI - Development Strategies and Governance Uniten_US
cg.identifier.projectIFPRI - Natural Resources and Resilience Uniten_US
cg.identifier.projectIFPRI - Systems Transformation - Transformation Strategiesen_US
cg.identifier.publicationRankNot rankeden_US
cg.number2226en_US
cg.placeWashington, DCen_US
cg.reviewStatusInternal Reviewen_US
cg.subject.actionAreaSystems Transformationen_US
cg.subject.impactAreaEnvironmental health and biodiversityen_US
dc.contributor.authorDavies, Stephenen_US
dc.contributor.authorAkram, Iqraen_US
dc.contributor.authorAli, Muhammad Tahiren_US
dc.contributor.authorHafeez, Mohsinen_US
dc.contributor.authorRingler, Claudiaen_US
dc.date.accessioned2024-01-09T16:56:07Zen_US
dc.date.available2024-01-09T16:56:07Zen_US
dc.identifier.urihttps://hdl.handle.net/10568/137418en_US
dc.titleThe economywide impacts of increasing water security through policies on agricultural production: The case of rice and sugarcane in Pakistanen_US
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_US
dcterms.accessRightsOpen Accessen_US
dcterms.audienceAcademicsen_US
dcterms.available2023en_US
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_US
dcterms.extent51 p.en_US
dcterms.isPartOfIFPRI Discussion Paperen_US
dcterms.issued2023-12-31en_US
dcterms.languageenen_US
dcterms.licenseOtheren_US
dcterms.publisherInternational Food Policy Research Instituteen_US
dcterms.relationhttps://doi.org/10.1007/978-3-030-65679-9_7en_US
dcterms.relationhttps://doi.org/10.1007/978-3-030-65679-9_15en_US
dcterms.relationhttp://hdl.handle.net/10986/31160en_US
dcterms.relationhttps://doi.org/10.2499/p15738coll2.134349en_US
dcterms.replaceshttps://ebrary.ifpri.org/digital/collection/p15738coll2/id/137073en_US
dcterms.subjectwater securityen_US
dcterms.subjectpoliciesen_US
dcterms.subjectagricultural productionen_US
dcterms.subjectriceen_US
dcterms.subjectsugar caneen_US
dcterms.subjectwater conservationen_US
dcterms.subjectwater allocationen_US
dcterms.subjectwater demanden_US
dcterms.subjectclimate changeen_US
dcterms.subjectland taxen_US
dcterms.subjectfarmlanden_US
dcterms.subjectcomputable general equilibrium modelsen_US
dcterms.typeWorking Paperen_US

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