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Determining the Price-Responsiveness of Demands for Irrigation Water Deliveries versus Consumptive Use

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  • Scheierling, Susanne M.
  • Young, Robert A.
  • Cardon, Grant E.

Abstract

A water-crop simulation/mathematical programming model of irrigation water demand in northeastern Colorado is formulated to develop an original concept of derived demand for consumptive use of water. Conventional demand functions for water deliveries are also developed, and the effect of hypothetical price increases on both consumption and delivery are illustrated. Findings indicate that demand elasticity estimates are quite sensitive to model specification, and consumptive use demand tends to be significantly less price-responsive than delivery demand. Thus price incentives are likely to have only limited impacts on basin-wide water consumption and would not make much additional water available for emerging demands.

Suggested Citation

  • Scheierling, Susanne M. & Young, Robert A. & Cardon, Grant E., 2004. "Determining the Price-Responsiveness of Demands for Irrigation Water Deliveries versus Consumptive Use," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 29(2), pages 1-18, August.
    • Handle: RePEc:ags:jlaare:31107
    DOI: 10.22004/ag.econ.31107
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    References listed on IDEAS

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    1. Michael Nieswiadomy, 1985. "The Demand for Irrigation Water in the High Plains of Texas, 1957–80," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 67(3), pages 619-626.
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    6. Marca Weinberg, 1997. "Federal Water Policy Reform: Implications For Irrigated Farms In California," Contemporary Economic Policy, Western Economic Association International, vol. 15(2), pages 63-73, April.
    7. Richard L. Gardner & Robert A. Young, 1984. "The Effects of Electricity Rates and Rate Structures on Pump Irrigation: An Eastern Colorado Case Study," Land Economics, University of Wisconsin Press, vol. 60(4), pages 352-359.
    8. Michelsen, Ari M. & Taylor, R. Garth & Huffaker, Ray G. & McGuckin, J. Thomas, 1999. "Emerging Agricultural Water Conservation Price Incentives," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-17, July.
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    4. Calatrava-Leyva, Javier & Guillem, Amanda & Martinez-Granados, David, 2011. "Análisis de alternativas para la eliminación de la sobreexplotación de acuíferos en el Valle de Guadalentín," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 11(02), pages 1-30, December.
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    9. Huang, Qiuqiong & Rozelle, Scott & Howitt, Richard E. & Wang, Jinxia & Huang, Jikun, 2006. "Irrigation Water Pricing Policy in China," 2006 Annual meeting, July 23-26, Long Beach, CA 21241, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    10. Obembe, Oladipo S., 2018. "Impact of Climate Change on Groundwater Extraction for Corn Production in Kansas," 2018 Annual Meeting, August 5-7, Washington, D.C. 274309, Agricultural and Applied Economics Association.
    11. Julio Berbel & M. Mesa-Jurado & Juan Pistón, 2011. "Value of Irrigation Water in Guadalquivir Basin (Spain) by Residual Value Method," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(6), pages 1565-1579, April.
    12. Muchara, B. & Ortmann, G. & Mudhara, M. & Wale, E., 2016. "Irrigation water value for potato farmers in the Mooi River Irrigation Scheme of KwaZulu-Natal, South Africa: A residual value approach," Agricultural Water Management, Elsevier, vol. 164(P2), pages 243-252.
    13. Scheierling, Susanne M., 2011. "Assessing the direct economic effects of reallocating irrigation water to alternative uses : concepts and an application," Policy Research Working Paper Series 5797, The World Bank.
    14. Grove, Bennie & Oosthuizen, Lukas Klopper, 2010. "Stochastic efficiency analysis of deficit irrigation with standard risk aversion," Agricultural Water Management, Elsevier, vol. 97(6), pages 792-800, June.
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