Expanding Irrigated Agriculture in Alberta: An Economic Impact Assessment

• Author / Creator

  Amsalu, Dareskedar W

• This study assessed the economic impacts of Alberta’s irrigated agriculture industry as of 2011 and evaluated the economic viability of expanding the irrigated crop land by 10% within the 13 irrigation districts in southern Alberta. Results of the economic impact assessment revealed that irrigation, directly or indirectly, generated $3.2 billion to the national gross domestic product. The distribution of these benefits was 17% for producers and 83% for the province and the nation. Results of the economic viability analysis revealed that with the existing government subsidy of 75% to the irrigation rehabilitation program, investment for expansion of irrigated crop land would be economically viable for producers. However, in the absence of this effective government subsidy, the investment would be unattractive. The results are consistent with the fact that irrigation expansion is a capital-intensive project and as such its economic viability for producers is contingent upon the levels of subsidy and the opportunity costs of capital. The results have important policy implications for the provision of economic incentives for producers investing in water saving irrigation technologies.

• Subjects / Keywords

  • Input-output analysis
  • Irrigation in Alberta
  • Irrigation cost-sharing
  • Cost-benefit analysis

• Graduation date

  Spring 2017

• Type of Item

  Thesis

• Degree

  Master of Science

• DOI

  https://doi.org/10.7939/R3XP6VG20

• License

  This thesis is made available by the University of Alberta Libraries with permission of the copyright owner solely for non-commercial purposes. This thesis, or any portion thereof, may not otherwise be copied or reproduced without the written consent of the copyright owner, except to the extent permitted by Canadian copyright law.