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Rural-To-Urban Water Transfers: Measuring Direct Foregone Benefits Of Irrigation Water Under Uncertain Water Supplies

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  • Taylor, R. Garth
  • Young, Robert A.
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    Abstract

    Irrigation water from a southeastern Colorado county has been sold to distant municipalities. The county's junior water right delivered limited and uncertain water supplies which were used on relatively poor soils. The ability of water markets to allocate water to the highest-valued use was addressed by assessing the direct foregone benefits of the transfer using deterministic and discrete stochastic sequential (DSSP) programming models. Crop mix predicted by the DSSP followed observed regional patterns. The DSSP was thus used to derive regional water demand from which foregone value was estimated. Direct regional foregone agricultural benefits were relatively low-due to uncertain water supplies and unproductive soils-indicating the market selected a low-valued supply for transfer.

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    File URL: http://purl.umn.edu/30769
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    Bibliographic Info

    Article provided by Western Agricultural Economics Association in its journal Journal of Agricultural and Resource Economics.

    Volume (Year): 20 (1995)
    Issue (Month): 02 (December)
    Pages:

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    Handle: RePEc:ags:jlaare:30769

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    Web page: http://waeaonline.org/
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    Related research

    Keywords: Resource /Energy Economics and Policy;

    References

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    1. Lambert, David K., 1989. "Calf Retention And Production Decisions Over Time," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 14(01), July.
    2. Anderson, Jock R. & Feder, Gershon, 2007. "Agricultural Extension," Handbook of Agricultural Economics, Elsevier.
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    Cited by:
    1. Leiva, Akssell J. & Skees, Jerry R., 2008. "Using Irrigation Insurance to Improve Water Usage of the Rio Mayo Irrigation System in Northwestern Mexico," World Development, Elsevier, vol. 36(12), pages 2663-2678, December.
    2. Houk, Eric E. & Taylor, Garth & Frasier, W. Marshall, 2000. "Valuing The Characteristics Of Irrigation Water In The Platte River Basin," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36454, Western Agricultural Economics Association.
    3. Olen, Beau & Wu, JunJie & Langpap, Christian, 2012. "Crop-specific Irrigation Choices for Major Crops on the West Coast: Water Scarcity and Climatic Determinants," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124843, Agricultural and Applied Economics Association.
    4. Berbel, J. & Rodriguez-Ocana, A., 1998. "An MCDM approach to production analysis: An application to irrigated farms in Southern Spain," European Journal of Operational Research, Elsevier, vol. 107(1), pages 108-118, May.
    5. Scheierling, Susanne M., 2011. "Assessing the direct economic effects of reallocating irrigation water to alternative uses : concepts and an application," Policy Research Working Paper Series 5797, The World Bank.
    6. Jakhalu, Atoho & Werthmann, Christine, 2011. "Governance of Inter-Sectoral Water Re-allocation within the Context of Urbanization in Hyderabad. Using the Institutions of Sustainability (IoS) framework," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114458, European Association of Agricultural Economists.

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