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Estimating the Value of Water Use Permits: A Hedonic Approach Applied to Farmland in the Southeastern United States

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  • Ragan A. Petrie
  • Laura O. Taylor

Abstract

Agricultural irrigation permits in the Flint River Basin in Georgia had been routinely granted until a moratorium was placed on permit issuance in 1999. This research exploits this policy change within a hedonic-pricing framework to estimate the value of irrigation rights in the southeastern United States. While the value of irrigation rights has been studied extensively in the western United States, differences in property rights and legal regimes, as well as a lack of established water-rights markets in the eastern United States, leave us with little information regarding the value of irrigation rights in this setting.

Suggested Citation

  • Ragan A. Petrie & Laura O. Taylor, 2007. "Estimating the Value of Water Use Permits: A Hedonic Approach Applied to Farmland in the Southeastern United States," Land Economics, University of Wisconsin Press, vol. 83(3), pages 302-318.
    • Handle: RePEc:uwp:landec:v:83:y:2007:i:3:p:302-318
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    References listed on IDEAS

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    1. John Faux & Gregory M. Perry, 1999. "Estimating Irrigation Water Value Using Hedonic Price Analysis: A Case Study in Malheur County, Oregon," Land Economics, University of Wisconsin Press, vol. 75(3), pages 440-452.
    2. Raymond B. Palmquist, 1989. "Land as a Differentiated Factor of Production: A Hedonic Model and Its Implications for Welfare Measurement," Land Economics, University of Wisconsin Press, vol. 65(1), pages 23-28.
    3. L. M. Hartman & R. L. Anderson, 1962. "Estimating the Value of Irrigation Water from Farm Sales Data in Northeastern Colorado," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 44(1), pages 207-213.
    4. Kennedy, Peter E, 1981. "Estimation with Correctly Interpreted Dummy Variables in Semilogarithmic Equations [The Interpretation of Dummy Variables in Semilogarithmic Equations]," American Economic Review, American Economic Association, vol. 71(4), pages 801-801, September.
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    2. Eric C. Edwards, 2016. "What Lies Beneath? Aquifer Heterogeneity and the Economics of Groundwater Management," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(2), pages 453-491.
    3. Smith, Steven M., 2018. "From decentralized to centralized irrigation management," Journal of Economic Behavior & Organization, Elsevier, vol. 151(C), pages 62-87.
    4. Shultz, Steven, 2010. "Hedonic Price Modeling to Value Irrigated Agriculture Across a River Basin," Western Economics Forum, Western Agricultural Economics Association, vol. 9(2), pages 1-14.
    5. Browne, Oliver R. & Ji, Xinde James, 2023. "The Economic Value of Clarifying Property Rights: Evidence from Water in Idaho’s Snake River Basin," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    6. Savage, Jeffrey & Ifft, Jennifer, 2013. "Does Pumping Pay: Groundwater Management Institutions and Cropland Values in Nebraska?," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150581, Agricultural and Applied Economics Association.
    7. James R. Meldrum, 2016. "Floodplain Price Impacts by Property Type in Boulder County, Colorado: Condominiums Versus Standalone Properties," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(4), pages 725-750, August.
    8. Christopher Shultz & Randall W. Jackson, 2014. "Water Valuation Research - Annotated Bibliography," Working Papers Resource Document 2014-01, Regional Research Institute, West Virginia University, revised 15 Jan 2015.
    9. World Bank Group, 2016. "Valuing Water Resources in Turkey," World Bank Publications - Reports 25291, The World Bank Group.
    10. Brent, Daniel A., 2013. "The Value of Heterogeneous Property Rights: The Costs of Water Volatility," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149698, Agricultural and Applied Economics Association.
    11. Chen, Susan Sou-I, 2010. "Hedonic Valuation of Timber Stands in the Great Lakes Northern Forests," Graduate Research Master's Degree Plan B Papers 98072, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    12. Ifft, Jennifer & Bigelow, Daniel P. & Savage, Jeffrey, 2018. "The Impact of Irrigation Restrictions on Cropland Values in Nebraska," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 43(2), May.
    13. Mukherjee, Monobina & Schwabe, Kurt A., 2012. "Valuing Access To Multiple Water Supply Sources In Irrigated Agriculture With A Hedonic Pricing Model," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124604, Agricultural and Applied Economics Association.
    14. Daniel A. Brent, 2014. "The Value of Heterogeneous Property Rights and the Costs of Water Volatility," Monash Economics Working Papers 45-14, Monash University, Department of Economics.
    15. Mabel Tidball & Jean-Philippe Terreaux, 2008. "Information revelation through irrigation water pricing using volume reservations," Working Papers 08-14, LAMETA, Universtiy of Montpellier, revised Sep 2008.
    16. Yoo, James & Perrings, Charles & Kinzig, Ann & Abbott, Joshua K. & Simonit, Silvio & Connors, John P. & Maliszewski, Paul J., 2012. "The Value of Water Rights in Agricultural Properties in the Phoenix Active Management Area," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124095, Agricultural and Applied Economics Association.
    17. Ma, Shan & Swinton, Scott M., 2011. "Valuation of ecosystem services from rural landscapes using agricultural land prices," Ecological Economics, Elsevier, vol. 70(9), pages 1649-1659, July.

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    More about this item

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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