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Conflicts over Water in the Upper Klamath Basin and the Potential Role for Market-Based Allocations

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  • Jaeger, William K.

Abstract

The curtailment of irrigation on the Klamath Reclamation Project in 2001 is estimated to have cost farmers more than $35 million. This study examines how alternative water allocations among irrigators in the Upper Klamath Basin could have lowered those costs. Per acre marginal water values vary by a factor of 20 due primarily to variations in soil productivity, with the highest productivity lands concentrated in the federal Project. A linear programming model estimates costs for alternative allocations. Findings indicate that compared to the 2001 allocation, costs could be reduced by 75% with a market-based approach.

Suggested Citation

  • Jaeger, William K., 2004. "Conflicts over Water in the Upper Klamath Basin and the Potential Role for Market-Based Allocations," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(2), pages 1-18, August.
    • Handle: RePEc:ags:jlaare:31103
    DOI: 10.22004/ag.econ.31103
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    References listed on IDEAS

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    1. Marca Weinberg & Catherine L. Kling, 1996. "Uncoordinated Agricultural and Environmental Policy Making: An Application to Irrigated Agriculture in the West," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 65-78.
    2. William K. Jaeger & Raymond Mikesell, 2002. "Increasing Streamflow To Sustain Salmon And Other Native Fish In The Pacific Northwest," Contemporary Economic Policy, Western Economic Association International, vol. 20(4), pages 366-380, October.
    3. Moore, Michael R. & Negri, Donald H., 1992. "A Multicrop Production Model Of Irrigated Agriculture, Applied To Water Allocation Policy Of The Bureau Of Reclamation," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 17(1), pages 1-15, July.
    4. Willis, David B. & Caldas, Jose Vaz & Frasier, W. Marshall & Wittlesey, Norman K. & Hamilton, Joel R., 1998. "The Effects Of Water Rights And Irrigation Technology On Streamflow Augmentation Cost In The Snake River Basin," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(1), pages 1-19, July.
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    1. Elbakidze, Levan & Vinson, Hannah & Cobourn, Kelly & Taylor, R.Garth, 2018. "Efficient groundwater allocation and binding hydrologic externalities," Resource and Energy Economics, Elsevier, vol. 53(C), pages 147-161.
    2. Cobourn, Kelly M. & Ji, Xinde & Mooney, Sian & Crescenti, Neil, 2017. "Water right seniority, economic efficiency and land allocation decisions," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258271, Agricultural and Applied Economics Association.
    3. Kelly M. Cobourn & Xinde Ji & Siân Mooney & Neil F. Crescenti, 2022. "The effect of prior appropriation water rights on land‐allocation decisions in irrigated agriculture," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(3), pages 947-975, May.
    4. Palazzo, Amanda & Brozović, Nicholas, 2014. "The role of groundwater trading in spatial water management," Agricultural Water Management, Elsevier, vol. 145(C), pages 50-60.
    5. Elbakidze, Levan & Fa’anunu, Benjamin & Mamula, Aaron & Taylor, R. Garth, 2017. "Evaluating economic efficiency of a water buyback program: The Klamath irrigation project," Resource and Energy Economics, Elsevier, vol. 48(C), pages 68-82.
    6. Reeling, Carson J. & Mitchell, Peter & Halimi, Ghulam Hazrat & Lee, John G. & Carver, Andrew, 2010. "Improving Agricultural Irrigation on the Balkhab River, Afghanistan," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 60741, Agricultural and Applied Economics Association.

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