Abstract
This study aimed to measure the economic efficiency of desalinated water used in agricultural production in general, and in the production of dates in particular. This study adopted the use of equations and econometric analysis to achieve its objectives. The prime findings of the study include: (1) desalinated water production increased from 1.13 billion m(3) in 2007 to 2.24 billion m(3) in 2016; (2) the amount of desalinated water used for drinking increased from 1.07 billion m(3), representing 53.97% of the total 1.98 billion m3 of drinking water, in 2007 to 1.95 billion m(3), representing 62.22% of the total 3.13 billion m(3) of potable water, in 2016. (3) The cost of desalination exceeded the value of productivity per unit of water used in the production of cereals, fodder, olives, citrus, apricots, peaches, pomegranates, figs, mangoes, bananas, berries, and apples. Productivity exceeded the desalination cost per unit of water used in the production of vegetables, dates, grapes, figs, almonds, pears, plums, and papayas. (4) The trend towards the use of desalinated water in Saudi agriculture lead to a net economic loss of SR 10.86 billion, with a desalination cost of SR 6/m(3), in 2015. (5) The marginal return of water used in date production in Riyadh was estimated at SR 0.89/m(3). The marginal rate of return for the cost of desalination was 0.148, so the use of desalinated water in date production is not economically efficient. (6) Based on the economic analysis made in study, it is recommended not to expand the use of desalinated water in agricultural production, except when the use of modern desalination techniques (solar and atomic energy) reduces the cost of desalination to reach the value of the marginal output of water used in agricultural production.