Investigating the effects of guaranteed purchase policy of agricultural products on virtual water(Case study of wheat in Yazd province)
Water is the most valuable asset to human beings, especially in Iran, where large areas are covered by arid and desert regions, while Iran has the highest freshwater extraction (90-94 percent) for agricultural use. . Virtual water integrates agricultural and economic concepts with emphasis on water as a key factor in production. On the other hand, one of the most important economic policies of governments on agricultural products is a guaranteed purchase policy to protect the producer. Therefore, the purpose of the present study is to investigate the effects of guaranteed purchase policy on virtual water in Yazd province for the period 1368-1977. The results of estimating self-verification and error correction models showed that the variable of virtual water index, production amount, average cost and virtual variable had a significant positive effect on the guaranteed price of wheat. and between the guaranteed price, vitual water and the average cost there is a causality and positive long-term relationship Also, the change in price from the guaranteed price variable has a negative and decreasing effect on the virtual water over a period of ten years, but at the end of the shock and long-term it is moderately positive in the positive region with little downward effect. Consequently, it should be considered as an important factor in the adoption of supportive policies, especially the guaranteed purchase policy, as well as to support the manufacturer of the guaranteed purchase policy with respect to the virtual water variable.
virtual water , Guaranteed Purchase , Wheat , VAR , vecm
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