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Estimated Economic Impact From Adoption Of Water-Related Agricultural Technology

Author

Listed:
  • Ellis, John R.
  • Lacewell, Ronald D.
  • Reneau, Duane R.

Abstract

This study estimates the expected benefits from adoption of new water-related technologies for the Texas High Plains, a region which is currently mining groundwater. Adoption rates for two improved irrigation systems and limited tillage practices are assumed, and changes in net returns, resource usage, and irrigated acres are examined as measures of adoption benefits. A recursive linear programming framework covering a 40-year period is employed, with results indicating that, contrary to what one might hope, adoption will not significantly lengthen the life of the aquifer. Annual water use changes very little with adoption, while irrigated acreages increase slightly. Adoption does provide a substantial increase in annual net returns, with discounted net returns increasing by 28 percent over those estimated for continued use of conventional technology.

Suggested Citation

  • Ellis, John R. & Lacewell, Ronald D. & Reneau, Duane R., 1985. "Estimated Economic Impact From Adoption Of Water-Related Agricultural Technology," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 10(2), pages 1-15, December.
    • Handle: RePEc:ags:wjagec:32310
    DOI: 10.22004/ag.econ.32310
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    File URL: https://ageconsearch.umn.edu/record/32310/files/10020307.pdf
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    References listed on IDEAS

    as
    1. Harman, Wyatte L. & Hardin, Daniel C. & Wiese, Allen F. & Unger, P.W. & Musick, Jack T., 1985. "No-Till Technology: Impacts On Farm Income, Energy Use And Groundwater Depletion In The Plains," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 10(1), pages 1-13, July.
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    Cited by:

    1. Li, Haoyang & Zhao, Jinhua, 2016. "Rebound Effect of Irrigation Technologies? The Role of Water Rights," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235966, Agricultural and Applied Economics Association.
    2. Lee, John G. & Lacewell, Ronald D., 1989. "Perversion of Risk Aversion: An Application to Farm Planning and Intertemporal Resource Allocation," WAEA/ WFEA Conference Archive (1929-1995) 244977, Western Agricultural Economics Association.
    3. Pfeiffer, Lisa & Lin, C.-Y. Cynthia, 2014. "Does efficient irrigation technology lead to reduced groundwater extraction? Empirical evidence," Journal of Environmental Economics and Management, Elsevier, vol. 67(2), pages 189-208.
    4. Schaible, Glenn D. & Kim, C.S. & Whittlesey, Norman K., 1991. "Water Conservation Potential From Irrigation Technology Transitions In The Pacific Northwest," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 16(2), pages 1-13, December.
    5. Louis Sears & Joseph Caparelli & Clouse Lee & Devon Pan & Gillian Strandberg & Linh Vuu & C. -Y. Cynthia Lin Lawell, 2018. "Jevons’ Paradox and Efficient Irrigation Technology," Sustainability, MDPI, vol. 10(5), pages 1-12, May.
    6. Nicolas E. Quintana Ashwell & Jeffrey M. Peterson, 2016. "The Impact of Irrigation Capital Subsidies on Common-Pool Groundwater Use and Depletion: Results for Western Kansas," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(03), pages 1-22, September.
    7. Song, Jianfeng & Guo, Yanan & Wu, Pute & Sun, SHikun, 2018. "The Agricultural Water Rebound Effect in China," Ecological Economics, Elsevier, vol. 146(C), pages 497-506.
    8. Ellis, John R. & Hughes, David W. & Butcher, Walter R., 1991. "Economic Modeling Of Farm Production And Conservation Decisions In Response To Alternative Resource And Environmental Policies," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 20(1), pages 1-11, April.

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