The Economic Value of Water in the Ganges-Brahmaputra-Meghna (GBM) River Basin

Abstract: This study estimates the scarcity value of irrigation water to farmers of Bangladesh and compares it with that of India especially in the Ganges dependent districts of both these countries. We use a physical production function approach for our analysis. The value of water ranges from USD 0.002 to 0.015 per m3 for irrigated boro rice in Bangladesh. The Southwest region, the Ganges dependent area has the highest value of water. The study has important implications for an optimal allocation of water between different groups of farmers.

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