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Water demand related to availability and price in an irrigation district in the Segura Basin

Abstract A methodology is presented to determine the demand of water to alternative sources, given the benefit functions of irrigation water in each unit of demand, and assuming that farmers will buy water if the price is less than the marginal benefit. In the study area, the benefits of farmers are estimated based on the availability of conventional water resources, the water allocation made and the sale price of desalinated water. If the price of desalinated water is €0.43/m3 and water is allocated optimally in the irrigation units, the demand for water would increase to cover up to 69% of the water needs in the entire irrigated areas. The highest associated benefits would be attained with the lowest water prices and the lowest initial availability of water.