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The Agricultural and Economic Value of Water

Author

Listed:
  • Brown, Christina Estela
  • Tanner, Sophia J.
  • Hrozencik, R. Aaron
  • Gramig, Benjamin M.

Abstract

Water is an essential resource that sustains not only agriculture and human communities but also the natural environment. It provides a suite of ecosystem services, such as recreation and habitat for wildlife, that affect the well-being of the public. However, the use and allocation of water involve tradeoffs, especially in the context of competing demands and limited availability. This report presents a targeted review of the economics literature on the economic value of water for agriculture and environmental flows, leveraging both observed behavior and survey methods. It examines the economic implications of these tradeoffs, with a focus on environmental and resource economics, energy economics, and applied econometrics. The report also highlights the challenges and opportunities associated with measuring the economic value of water, including the complexity of the systems involved, the heterogeneity of preferences and behaviors, and the uncertainty of water availability.

Suggested Citation

  • Brown, Christina Estela & Tanner, Sophia J. & Hrozencik, R. Aaron & Gramig, Benjamin M., 2025. "The Agricultural and Economic Value of Water," Economic Information Bulletin 356606, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersib:356606
    DOI: 10.22004/ag.econ.356606
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    References listed on IDEAS

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