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Irrigation Water Demand: Price Elasticities and Climatic Determinants in the Great Lakes Region

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  • Kornelis, Ari
  • Norris, Patricia

Abstract

This article explores the environmental and market determinants of irrigation management in a five-state Great Lakes region. We found evidence that corn, soybean, and potato irrigators respond to the cost of water at the intensive margin. Evidence of a water-cost effect at the extensive margin was mixed. This article is unique in its geographic focus and its consideration of various temperature effects. We found evidence of a long-run average temperature effect on crop acreage allocation decisions and a short-run extreme heat effect on water application rates.

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  • Kornelis, Ari & Norris, Patricia, 2020. "Irrigation Water Demand: Price Elasticities and Climatic Determinants in the Great Lakes Region," Agricultural and Resource Economics Review, Cambridge University Press, vol. 49(3), pages 437-464, December.
    • Handle: RePEc:cup:agrerw:v:49:y:2020:i:3:p:437-464_3
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