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Emerging Agricultural Water Conservation Price Incentives

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  • Michelsen, Ari M.
  • Taylor, R. Garth
  • Huffaker, Ray G.
  • McGuckin, J. Thomas

Abstract

Recent Bureau of Reclamation policies encourage or require irrigation districts to adopt price conservation incentives. Using unpublished survey results and new district-level information, we examine the rate structures and incentives of district water pricing. Our findings reveal that the majority of districts use fixed charges independent of the quantity of water delivered and that most conservation rate structures recently implemented are designed so that the first tier quantity allocation satisfies most crop water needs. Although other district management objectives may be satisfied, price incentives are diminished or nonexistent. The question of whether conservation is being achieved is tautological and depends on how each district defines conservation.

Suggested Citation

  • Michelsen, Ari M. & Taylor, R. Garth & Huffaker, Ray G. & McGuckin, J. Thomas, 1999. "Emerging Agricultural Water Conservation Price Incentives," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-17, July.
    • Handle: RePEc:ags:jlaare:30871
    DOI: 10.22004/ag.econ.30871
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    References listed on IDEAS

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    1. Huffaker, Ray G. & Whittlesey, Norman K., 1995. "Agricultural Water Conservation Legislation: Will It Save Water?," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 10(4), pages 1-5.
    2. Huffaker, Ray G. & Whittlesey, Norman K. & Michelsen, Ari M. & Taylor, R. Garth & McGuckin, J. Thomas, 1998. "Evaluating The Effectiveness Of Conservation Water-Pricing Programs," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(1), pages 1-8, July.
    3. Huffaker, Ray G. & Whittlesey, Norman K. & Michelsen, Ari M. & Taylor, R. Garth & McGuckin, J. Thomas, 1998. "Evaluating The Effectiveness Of Conservation Water-Pricing Programs: Reply," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(2), pages 1-2, December.
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    Cited by:

    1. Xinde Ji & Kelly M. Cobourn, 2018. "The Economic Benefits of Irrigation Districts under Prior Appropriation Doctrine: An Econometric Analysis of Agricultural Land‐Allocation Decisions," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(3), pages 441-467, September.
    2. Schuck, Eric C. & Green, Gareth P., 2001. "Conservation Pricing And Ground Water Substitution," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36043, Western Agricultural Economics Association.
    3. Gürlük, Serkan & Ward, Frank A., 2009. "Integrated basin management: Water and food policy options for Turkey," Ecological Economics, Elsevier, vol. 68(10), pages 2666-2678, August.
    4. Schuck, Eric C. & Green, Gareth P., 2002. "The Importance Of Tariff Structure In Conservation Pricing," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36607, Western Agricultural Economics Association.
    5. Ji, Xinde & Cobourn, Kelly M., 2017. "Water Availability, Land Allocation, and the Role of Irrigation Districts under Prior Appropriation Doctrine," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258377, Agricultural and Applied Economics Association.
    6. Scheierling, Susanne M. & Young, Robert A. & Cardon, Grant E., 2004. "Determining the Price-Responsiveness of Demands for Irrigation Water Deliveries versus Consumptive Use," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(2), pages 1-18, August.

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