Restoring Lake Urmia using PES economic policy instrument: An assessment of direct payment schedule to hinder farmers from crop cultivation

Extensive loss in water table and successive decline of Lake Urmia, has induced some problems and worries in national and international levels. This has raised necessity of the application of new approaches in management practices to improve water consumption patterns in Lake Urmia area. Among existing and efficient economic policy instruments to protect natural resources, the Payment for Ecosystem Services mechanism (PES) has recently attracted attention in different countries with remarkable implications.
In the present study, an effort was made to assess technical and economic aspects of the PES in terms of direct payment to hinder the farmers from crop cultivation in their owned lands. This can lead to a better clarification of socio-economic needs in applying new management practices for water resources in Simineh Rud sub-basin emphasizing water consumption reduction in agricultural sector which will increase more water release for the Lake.
The results of this study showed that 55.53 percent of inhabitant farmers are agree with such an idea and it is acceptable to local community members.
Also, from economic point of view, the benefit-cost ratio has been calculated as 1.7 for implanting this policy in the sub-basin. Therefore, it can be argued that direct payment to farmers to hinder them from crop cultivation is economically feasible and efficient.