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Climate Variability and Water Infrastructure: Historical Experience in the Western United States

In: The Economics of Climate Change: Adaptations Past and Present

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  • Zeynep K. Hansen
  • Gary D. Libecap
  • Scott E. Lowe

Abstract

Greater historical perspective is needed to enlighten current debate about future human responses to higher temperatures and increased precipitation variation. We analyze the impact of climatic conditions and variability on agricultural production in five semi-arid western states. We assemble county-level data on dams and other major water infrastructure; agricultural crop mixes and yields; precipitation and temperature; soil quality, and topography. Using this extensive data set, we analyze the impact of water infrastructure investments on crop mix and yields in affected counties relative to similarly-endowed counties that lack such infrastructure. We find that water infrastructure smoothes agricultural crop production and increases the likelihood of a successful harvest, especially during times of severe drought or excessive precipitation.

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This chapter was published in:

  • Gary D. Libecap & Richard H. Steckel, 2011. "The Economics of Climate Change: Adaptations Past and Present," NBER Books, National Bureau of Economic Research, Inc, number libe10-1.
    This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 11989.

    Handle: RePEc:nbr:nberch:11989

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    Cited by:
    1. Hansen, Zeynep K. & Lowe, Scott E. & Xu, Wenchao, 2014. "Long-term impacts of major water storage facilities on agriculture and the natural environment: Evidence from Idaho (U.S.)," Ecological Economics, Elsevier, vol. 100(C), pages 106-118.

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