Policies to encourage the uptake of efficient irrigation technology have played an important role in achieving water conservation goals in arid area and in reducing polluted return flows from irrigation farms. A good policy depends significantly on the method used to determine farmers' irrigation technology adoption decision. This chapter provides a critical review of capital budgeting methods applicable to modeling the irrigation technology adoption decision. Elements affecting the value of investment, including the roles of risk preferences, risk transformation, the value of information, are analyzed and real option frameworks are discussed. The chapter is concluded with future research suggestions.
|Title of host publication||Irrigation Management, Technologies and Environmental Impact|
|Editors||M. Hossain Ali|
|Place of Publication||New York|
|Publisher||Nova Science Publishers|
|Number of pages||11|
|Publication status||Published - Feb 2013|