Welfare effect of excessive extraction of groundwater resources in the plain of Hamadan - Bahar

The groundwater resources in Hamedan-Bahar plain are threated by uncontrolled exploitation and overmining. So the underground water levels are depletion. The aim of this study is to analyze the welfare of farmers affected by excessive exploitation of these resources. Information collected in the field, through interviews and questionnaires completed by farmers in 2015. For this purpose, the estimation welfare function, measured the effect of reducing the groundwater level on the welfare of farmers. In this study, the effects of land adjacent to the welfare of farmers, estimated through spatial econometric approach. The correlation coefficient of the estimate showed that the use of spatial regression superior to the classical regression model. The results show that the annual welfare loss per meter groundwater level is for each farmer in wheat and potato 18754300 and 35672800 Rials, respectively. Thus, the losses to farmers, 5632235 Rials, and in the study area is 52 billion rials. Thus, decreased 2.6 percent of the per capita income of farmers. Therefore, considerable reduction in welfare and a continuation of this situation in the long term lead to reduced water availability and reducing the welfare of farmers. Therefore Recommended investment by governments at least reduced welfare, preservation and groundwater recharge. Also be customized to farmers who participate in watershed management projects designed by the government.