Table of Contents

Handbook of Water Economics

Handbook of Water Economics

Edited by Ariel Dinar and Kurt Schwabe

Water scarcity, whether in the quality or quantity dimension, afflicts most countries. Decisions on water management and allocation over time, space, and among uses and users involve economic considerations. This Handbook assembles research that represents recent thinking and applications in water economics. The book chapters are written by leading scholars in the field who address issues related to its use, management, and value. The topics cover analytical methods, sectoral and intersectoral water issues, and issues associated with different sources of water.

Chapter 18: Salinity and groundwater management: a hydro-economic analysis

Kurt Schwabe and Keith C. Knapp

Subjects: economics and finance, environmental economics, environment, water


It is a challenge to find a semi-arid or arid agricultural region globally that does not face negative impacts from salinity and drainage problems. Affected areas include approximately 1.5 million hectares of irrigated agricultural lands in the Murray–Darling River Basin, nearly 24 million hectares in the USA, about 4 million hectares in both the Indus Plain and Aral Sea Basin, and over 1 million hectares in the Nile Delta (Schwabe et al., 2006). Due to the impacts of salinity on soil quality, plant growth and thus the long-term sustainability of irrigated agriculture, it is a major concern to not only these regions but also to society at large given that irrigated agriculture supplies 40 percent of the world’s food needs and is targeted to meet most of the future food demand increases (Anderson et al., 1997; Postel, 2000; Rosegrant et al., 2001). Historically, poor salinity management has contributed to the downfall of several societies, including ancient Mesopotamia, the Viru Valley in Peru and the Hohokum indigenous tribes of the Salt River region in Arizona (Tanji, 1990). A common mechanism by which salinity affects agricultural production is through irrigation with saline water.

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