Maximizing economic efficiency for the joint use of water in arid land

Abstract EN

The United Arab Emirates, as part of the Gulf Cooperation Council (GCC), is considered an area suffering from water scarcity, especially with its rapid population growth.

This paper explores the economic feasibility of multiple uses of water.

Water reuse has been identified as an important method for solving the water crisis and countering the water deficit of arid lands.

Secondary and tertiary treated wastewater is used more and more for irrigation of field crops, landscaping, and for other applications.

However, the use of treated wastewater for irrigation is subject to major concerns because of the probable escalation of hygienic and environmental harm.

To date, research has concentrated principally on the biological viability of multiple uses of water.

This research relies upon two models : products diversification and economic scope for establishing an integrated production system.

Using water for irrigation (traditional crops) and to grow other crop May provide a comparative advantage for new crops in arid land.

For an integrated farm to be profitably successful, it must be able to share common economic resources adequately (land and water, capital, and labor).

This dynamic creates a sub-additive cost function.

This study applies an economic theoretical model and systems analysis paradigm.

Through the process of comparative statistics, the researcher is able to determine that in the case of technical complementary product interdependence, there is a direct relationship between the input of one product and the output of the other good.

There is complementary product interdependence; a change in the price of one good would lead to the same change in direction for output of the other good.

Also, competitive analysis comprehensively examines the difficulties that an integrated producer faces in creating and maintaining a long-term presence in the market.

In addition, foreign producers could create an entry-deterring price for the new product markets.

This study is suggested for future new crop research in arid areas to help offset the two major water problems in the arid land, increasing water prices and water scarcity.