Economic Valuation of Groundwater for Irrigation of Rice Farmers in Pila, Laguna, 2024

Date

6-2025

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Antonio Jesus A. Quilloy

Committee Member

Geny F. Lapiña, Maria Angeles O. Catelo

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Abstract

This study measured the economic price of groundwater used for irrigation by rice farmers in Pila, Laguna, where farmers primarily use shallow tubewells (STW) for irrigation. A total of 68 randomly selected rice farmers from four barangays namely (Aplaya, Bagong Pook, Linga, and Pinagbayanan) were interviewed during the dry season of 2024. The specific objectives of the study were to (1) determine the financial price of groundwater based on direct extraction costs, (2) estimate the marginal productivity of groundwater, (3) calculate the economic price of groundwater extraction, (4) identify factors affecting the economic price, and (5) provide policy recommendations based on the results of the study.

Using production function analysis, the study found out that the economic price of groundwater was PhP 78.57/m3. This estimate was based on the production elasticity of fuel equal to 0.338 Meanwhile, the financial price of groundwater was PhP 30.29/m3, which comprises the cost of fuel (PhP 1.14/m3), labor (PhP 24.85/m3), maintenance (PhP1.35/m3 ) and the depreciation cost of STW unit (PhP 1.31/m3) and the engines (PhP1.65/m3 ).

The substantial gap between the financial and economic prices indicates that farmers currently pay only the direct extraction costs, which can lead to potential overextraction and depletion of groundwater resources, as a result of undervaluation. Based on the findings, this study recommends the following: (a) monitoring and regulation of groundwater; (b) adoption of water-saving technologies; and (c) improving irrigation structures.

Language

English

LC Subject

Rice farming—Philippines, Irrigation—Equipment and supplies, Irrigation—Management

Location

UPLB College of Economics and Management (CEM)

Call Number

LG 993.5 2025 A14 P38

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Document Type

Thesis

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