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Evaluating The Effectiveness Of Conservation Water-Pricing Programs

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  • Huffaker, Ray G.
  • Whittlesey, Norman K.
  • Michelsen, Ari M.
  • Taylor, R. Garth
  • McGuckin, J. Thomas

Abstract

Charging farmers increasing block prices for irrigation deliveries is advocated as a means of encouraging agricultural water conservation in the West. We formulated a model of a hypothetical irrigated river basin to investigate the hyrdro-economic circumstances in which such pricing leads to water conservation. Our results indicate that increasing delivery prices may encourage irrigators to make adjustments with countervailing impacts on consumptive water use and conservation. Whether these countervailing impacts combine to conserve water or increase its consumptive use must be resolved empirically. An alternative resolution of this ambiguity is to assess water prices in terms of consumptive use.

Suggested Citation

  • Huffaker, Ray G. & Whittlesey, Norman K. & Michelsen, Ari M. & Taylor, R. Garth & McGuckin, J. Thomas, 1998. "Evaluating The Effectiveness Of Conservation Water-Pricing Programs," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(1), pages 1-8, July.
  • Handle: RePEc:ags:jlaare:31174
    DOI: 10.22004/ag.econ.31174
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    File URL: https://ageconsearch.umn.edu/record/31174/files/23010012.pdf
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    References listed on IDEAS

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    1. Chakravorty Ujjayant & Hochman Eithan & Zilberman David, 1995. "A Spatial Model of Optimal Water Conveyance," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 25-41, July.
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    Cited by:

    1. de Fraiture, Charlotte & Perry, C. J., 2007. "Why is agricultural water demand unresponsive at low price ranges?," IWMI Books, Reports H040602, International Water Management Institute.
    2. Schuck, Eric C. & Green, Gareth P., 2002. "Farm Level Irrigation Technology Decisions Over Time," 2002 Annual meeting, July 28-31, Long Beach, CA 19632, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. 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.
    4. Michelsen, Ari M. & McGuckin, J. Thomas & Taylor, R. Garth & Huffaker, Ray G., 1998. "Irrigation District Adoption Of Water Conserving Rate Structures," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20964, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Schuck, Eric C. & Green, Gareth P., 2002. "The Importance Of Tariff Structure In Conservation Pricing," 2002 Annual Meeting, July 28-31, 2002, Long Beach, California 36607, Western Agricultural Economics Association.
    6. Folhes, M.T. & Rennó, C.D. & Soares, J.V., 2009. "Remote sensing for irrigation water management in the semi-arid Northeast of Brazil," Agricultural Water Management, Elsevier, vol. 96(10), pages 1398-1408, October.
    7. de Fraiture, Charlotte & Perry, C. J., 2007. "Why is agricultural water demand unresponsive at low price ranges?," Book Chapters,, International Water Management Institute.
    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.
    9. Schuck, Eric C. & Green, Gareth P., 2001. "Conservation Pricing And Ground Water Substitution," 2001 Annual Meeting, July 8-11, 2001, Logan, Utah 36043, Western Agricultural Economics Association.
    10. 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.

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