Empirical Analysis of the Demand for Water by Israeli Agriculture

Abstract

The aim of this chapter is to review the methodology followed by an empirical analysis of the demand for water by Israeli agriculture (Yaron, 1966) and to stress the thesis—basic to the approach—that in the economic analysis of the complex of problems of the water resource in agriculture, irrigation water can and should be referred to as any other production factor which takes part in the process of agricultural production. Concerning the demand for irrigation water, our approach refers to water within the framework of production functions, from which the demand for water is derivable. On the supply side, water is referred to as an output producible at variable, man-controlled output levels. The study concentrates on the analysis of the agricultural demand, utilizing results of analyses regarding supply and urban demand performed by experts in the other fields.