Most of the water used for agricultural and municipal purposes comes from river basins. Traditionally, the analysis of trade-offs has been confined to evaluating the marginal value of water in urban and municipal uses. However, return flows from these uses often end up in coastal waters that support downstream shrimp and other fish habitats. The authors have examined this problem by developing a conceptual model of a river basin with multiple uses. They have developed equilibrium conditions for water allocation to these alternative uses. A unique feature of this model is that the demand for water may vary due to exogenous conditions, such as drought. So the authors have applied this framework to the secondary data obtained from the Ogeechee river basin in coastal Georgia to show that given that the marginal values of water in upstream agriculture use and downstream fisheries may be somewhat similar, there may be a case for diverting a small amount of water away from irrigation and for the preservation of shrimp habitats, especially in drought years. However, further research is necessary to collect primary data on the economic value of water flows in upstream and downstream uses, and make more accurate estimates of the water transfers that may be necessary to preserve Georgia's coastal environments.
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Volume (Year): IV (2006) Issue (Month): 1 (February) Pages: 38-54 Download reference. The following formats are available: HTML,
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Handle: RePEc:icf:icfjee:v:04:y:2006:i:1:p:38-54
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