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Water and Land as Quantity-Rationed Inputs in California Agriculture: Empirical Tests and Water Policy Implications

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  • Michael R. Moore
  • Ariel Dinar

Abstract

This paper evaluates competing models of input use for two inputs, surface water and land, in central California agriculture. Applying a model of the multiproduct firm, a variable input model is compared to a fixed input model using model specification tests. Test results support the fixed input model for both surface water and land. The finding that surface water is a quantity-rationed input addresses an important water policy issue, implementation of the Central Valley Project Improvement Act. Water rationing has implications for three key provisions of the act involving water price increases, water marketing, and water supply restrictions.

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Bibliographic Info

Article provided by University of Wisconsin Press in its journal Land Economics.

Volume (Year): 71 (1995)
Issue (Month): 4 ()
Pages: 445-461

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Handle: RePEc:uwp:landec:v:71:y:1995:i:4:p:445-461

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Web page: http://le.uwpress.org/

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Cited by:
  1. World Bank, 2001. "India : Power Supply to Agriculture, Volume 1. Summary Report," World Bank Other Operational Studies 15288, The World Bank.
  2. Lichtenberg, Erik, 2000. "Agriculture And The Environment," Working Papers 28567, University of Maryland, Department of Agricultural and Resource Economics.
  3. Olen, Beau & Wu, JunJie & Langpap, Christian, 2012. "Crop-specific Irrigation Choices for Major Crops on the West Coast: Water Scarcity and Climatic Determinants," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124843, Agricultural and Applied Economics Association.
  4. C.E. Moolman & J. N. Blignaut & R. Van Eyden, 2006. "Modeling the Marginal Revenue of Water in Selected Agricultural Commodities: A Panel Date Approach," Working Papers 200606, University of Pretoria, Department of Economics.
  5. Diane Dupont & Steven Renzetti, 2001. "The Role of Water in Manufacturing," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 18(4), pages 411-432, April.
  6. Schuck, Eric C. & Green, Gareth P. & Sunding, David L., 2000. "Irrigation Water Rate Reform And Endogenous Technological Change," 2000 Annual Meeting, June 29-July 1, 2000, Vancouver, British Columbia 36463, Western Agricultural Economics Association.
  7. Ranjan, Ram & Gollehon, Noel R. & Aillery, Marcel P., 2004. "Explaining Participation in Spot and Options Markets for Water," Working Papers 15650, University of Florida, International Agricultural Trade and Policy Center.
  8. Shumway, C. Richard, 1995. "Recent Duality Contributions In Production Economics," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(01), July.
  9. Letort, Elodie & Carpentier, Alain, 2010. "Variable Input Allocation: Why Heterogeneity Matters?," 120th Seminar, September 2-4, 2010, Chania, Crete 109387, European Association of Agricultural Economists.
  10. Manuel Mart�n Rodr�guez & Francisco Javier Sáez Fernández & Juan Alberto Aragón Correa & El�as Melchor Ferrer & Noelina Rodr�guez Ferrero, 2002. "Evaluation of irrigation projects and water resource management: a methodological proposal," Sustainable Development, John Wiley & Sons, Ltd., vol. 10(2), pages 90-102.

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