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On-Farm Reservoir Adoption in the Presence of Spatially Explicit Groundwater Use and Recharge

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  • Kovacs, Kent
  • Popp, Michael
  • Bryce, Kristofer
  • West, Grant

Abstract

Groundwater management is conducted in spatial aquifers where well pumping results in localized cones of depression. This is in contrast to the single-cell aquifer used in most economic analyses that assumes groundwater depletion occurs uniformly over a study area. We address two aspects of the optimal management of groundwater: a spatially explicit representation of the aquifer and the potential of on-farm reservoirs to recharge the underlying aquifer. A spatial-dynamic model of the optimal control of groundwater use and on-farm reservoir adoption is developed. Results suggest that a single-cell aquifer overestimates groundwater use and farm net returns over thirty years.

Suggested Citation

  • Kovacs, Kent & Popp, Michael & Bryce, Kristofer & West, Grant, 2015. "On-Farm Reservoir Adoption in the Presence of Spatially Explicit Groundwater Use and Recharge," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(1), pages 1-27.
    • Handle: RePEc:ags:jlaare:197375
    DOI: 10.22004/ag.econ.197375
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    1. Kovacs, Kent & Popp, Michael & Xu, Ying & West, Grant, 2016. "Tradeoffs among multiple ecosystem services and economic returns from groundwater depletion on a farm landscape," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235357, Agricultural and Applied Economics Association.
    2. Kent Kovacs & Grant West, 2016. "The Influence of Groundwater Depletion from Irrigated Agriculture on the Tradeoffs between Ecosystem Services and Economic Returns," PLOS ONE, Public Library of Science, vol. 11(12), pages 1-22, December.
    3. Knapp, T. & Kovacs, K. & Huang, Q. & Henry, C. & Nayga, R. & Popp, J. & Dixon, B., 2018. "Willingness to pay for irrigation water when groundwater is scarce," Agricultural Water Management, Elsevier, vol. 195(C), pages 133-141.
    4. West, Grant H. & Snell, Heather & Kovacs, Kent & Nayga, Rodolfo M., 2020. "Estimation of the preferences for the intertemporal services from groundwater," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304220, Agricultural and Applied Economics Association.
    5. Kent F. Kovacs & Shelby Rider, 2022. "Estimating the Demand for In Situ Groundwater for Climate Resilience: The Case of the Mississippi River Alluvial Aquifer in Arkansas," NBER Chapters, in: American Agriculture, Water Resources, and Climate Change, pages 367-381, National Bureau of Economic Research, Inc.

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    Keywords

    Agribusiness; Land Economics/Use;

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