Investigating the Economic and Welfare Effects of the Water Market: A Positive Mathematical Programming Model Approach

In this study, the aim is to identify the economic and welfare effects of forming the water market in the Varamin region. Changes in the area under aquaculture, gross profit in two situations (water market and lack of water market) during 2011-2016 were calculated and compared using GAMS software and positive mathematical programming model. The results show that the establishment of the water market would have a positive and incremental effect on the gross profit of farmers in the region. Also, Cultivation of crops such as wheat, rice, barley, cucumber and potatoes, tomatoes and garlic has been more profitable and more crops can be planted. Based on the results, it is suggested that the government provide private-sector participation through investment and financial incentives.