Valuation of Groundwater for agricultural used (Ec approach)

Water as a production input, like other inputs has demand and thereby price. The applicants of this important source buy water with considering the kind of its consumption and the values of its output. The aim of this paper is to determine the value of groundwater irrigation water in Mybodcounty, Iran. To find the market price of irrigation water in agricultural sector the production function was used. This method is used when the unit price of water is not distinguishable in market place. Therefore, the cluster sampling method is used, some 183 questionnaires were completed for determining the values of water and land in 2010.The findings indicated than the marginal production per unit of water was higher than corresponding cost of pumping.