Economic Modeling of Agricultural Water Resource Management in Tehran Province with Emphasis on the Role of Water Market

In present study the formation effects of local and regional water markets in Tehran province were investigated and the potential of water transfer under water scarcity conditions in this province were analyzed. For this purpose, an economic modeling including positive mathematical programming (PMP) model and state wide agricultural production (SWAP) functions were used. The results showed that with establishment of the local and regional water markets in Tehran province; in addition to creation the balance between supply and demand of irrigation water and equilibrate the water trading between the studied regions, total irrigated lands 7/41% and total farmers’ gross profit 9/27% are increased. Finally, due to the supportive and constructive role of local and regional water markets, providing the required grounds to establishment and optimal use of this type of mechanism in Tehran province and other regions of the country where have shared water resources are suggested.