Economics of selected water control technologies and their successful use: The case of Ethiopia

Abstract

Using a production function, marginal productivity of farm inputs and benefit-cost analysis, we explore the economics of selected water control technologies. From the production function, all farm inputs, including irrigation water is found to have a significant and positive effect on yield. Marginal value products of farm inputs are found to be positive but their magnitudes differ by type of control structures, crop type, agro-ecology and regions. The net present values of all water control structures are positive. There is a favorable precondition for sustainable adoption of these controls technologies and institutionalizing some sort of cost recovery schemes. The level of education, the ratio of irrigated land allocated to irrigated annuals and perennials, access to markets and off-farm income are found to have significant effect on successful use of these control structures. Recommendations and policy implications are drawn accordingly.

Keywords: water control, NPV, production function, instrumental variables regression; Africa.