Middle-East Journal of Scientific Research 13(Special Issue of Economics): 37-42, 2013 ISSN 1990-9233 © IDOSI Publications, 2013 DOI: 10.5829/idosi.mejsr.2013.13.e.13007 Corresponding Author: Leyla Vaezi, Department of Agricultural Economic Engineering, Science and Research Branch, Islamic Azad University, Tehran, Iran. Mob: +09143180503. 37 Studying the Economic and Environmental Effects of Selected Irrigated Agricultural Enterprises in Iran Leyla Vaezi, Saeed Yazdani and Reza Moghaddasi 1 2 1 Department of Agricultural Economic Engineering, 1 Science and Research Branch, Islamic Azad University, Tehran, Iran Department of Agricultural Economic Engineering, Tehran University, Tehran, Iran 2 Abstract: It is hard to argue that water scarcity has become an important issue in the world. The figures in all over the world indicate that agriculture sector has a large share in water consumption. Due to drought seasons in recent years, irrigated agriculture has increased significantly and the depletion of underground aquifers has become serious issue. In this study the environmental performance index (EPI) was applied to measure the economic and environmental performance of main irrigated agricultural enterprises in Iran. The EPI index was computed using data envelopment analysis (DEA) techniques. The results indicated that the environmental effects of irrigated enterprises vary significantly among enterprises and across the years of study. The results showed that wheat has the most EPI score among enterprises of study that this indicates least environmental effects and high economic return and walnut has the least EPI score that this indicates greater environmental effects and low economic return. Key words: DEA EPI Irrigated enterprises Ecological effects Ramsar INTRODUCTION erosion and sedimentation, biological and ecological The relationship between irrigated agriculture and its and human health [2], although all aspects are not often effects on ecosystems has been performed an important covered for a given project, due to external factors role between the human need for food and nature [1]. affecting project implementation. The importance of Irrigation has been practiced for at least 4,000 years, natural flooding to fisheries and recession agriculture and primarily because it allows for increased productivity groundwater recharge have been realized only recently through more optimal timing of water application [2]. It is [1]. In addition to these problems related to the dwindling estimated that around 5 percent of agricultural land quantities of available freshwater, significant water quality globally (264 million ha) is irrigated, with South Asia problems can be traced back to agriculture in general and (35%), Southeast Asia (15%) and East Asia (7%) showing to irrigated agricultural enterprises in particular [5]. a high dependency on irrigation [3]. Irrigation accounts Irrigation or activities associated with agricultural for approximately 70 percent of the water withdrawn from irrigation can cause adverse impacts to wetland ecological freshwater systems for human use [3]. Only 30-60 percent resources and also contribute to rising water tables as a is subsequently used downstream, making irrigation the result of water percolation below the root zone, or largest net user of freshwater [4]. While environmental deepdrainage, which can in turn cause salt mobilisation impacts have been recognized as important in assessing and salt deposition in the soil profile [6, 7, 8]. agricultural projects and assessment processes exist, Other types of pollution that can be linked to active monitoring against baseline pre-project conditions agriculture and to irrigation, such as excessive nutrient have not kept pace with developments in productivity. and pesticide deposition carried by run off or percolation, Some aspects often regarded as important in assessment create serious water quality problems including are hydrology, water and air quality, soil properties, eutrophication and algal blooms [5]. change, socio-economic impacts, ecological imbalances