This paper analyzes the demand of water-saving technologies in irrigation. The theoretical model shows that the willingness to pay for this technology depends on water prices, price-elasticity of water demand and water requirements of each technology. These relationships are explored in a simulation model. The willingness to pay for water-saving technologies is measured as differences in gross margin between technologies that need different amounts of water to produce one unit of output.

Key words: technology, water-savings, irrigation.
JEL classification: Q25,C61.