Evaluating the Total Water Demand Function (Case study Province of Isfahan)

Water resources are considered as a capital good as well as natural resources. Since، water resources create services for sectors such as municipalities، agriculture، industrial activities and recreation، then is considered as a capital good. Because it is a gift of nature and scarce at the same times، it is considered as a natural resources. This natural asset is a not replaceable and is a valuable good for economic development and societal development. Also it is important element in keeping economic equilibrium، stability of ecosystem and quality of environment. With due attention to demand water and supply، economists can come up with right decisions to deal with scarcity of water resources. There are good enough papers about demand for water in different sector such as municipalities، agriculture and industry. But considering that water is transferable، from one sector to another، then we need to estimate aggregate demand for water rather than considering it separately function. In this paper، aggregated demand for water، first in the context of simultaneities system of equations is evaluated and secondly، evaluates aggregated demand with classification for the variables affecting the demand. At the end quantity supplied and demanded and equilibrium prices are forecasted for 1390 to 1400 and for the province of Esfahan. Some finding of the research are that، there are a positive connection between consumer income and aggregated demand for water، land and water are complement inputs and labor and water are substitution inputs.