IDEAS home Printed from https://ideas.repec.org/a/ags/ssaaea/232751.html
   My bibliography  Save this article

The Economics of Water: The Effects of Irrigation on Average Farm Revenue

Author

Listed:
  • Moore, Madison

Abstract

By 2025, water withdrawals are expected to increase by 50% in developing countries and 18% in developed countries. By 2050, 2.7 billion people will need to draw from our current source of freshwater; irrigated agriculture currently accounts for 40% of all food production. With the demand for irrigation water rapidly increasing and supply being finite, issues related to conservation, allocation and policy are becoming more and more important. This investigation is aimed at analyzing production behavior through a study of average farm revenue and several input demand variables. It is found that farmers seek to maximize profit through increased water application rates as well as production of high -valued, water -intensive crops. Through an understanding of what drives production behavior, policy makers can increase their understanding of irrigation water importance as well as properly control its usage. Furthermore, by investigating water consumption in the largest water using sector (agricultural production), the world can come to a better understanding of the importance of irrigation in the agricultural industry as well as the impact of decreases in water availability on food production.

Suggested Citation

  • Moore, Madison, 2015. "The Economics of Water: The Effects of Irrigation on Average Farm Revenue," SS-AAEA Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 2015, pages 1-13.
    • Handle: RePEc:ags:ssaaea:232751
    DOI: 10.22004/ag.econ.232751
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/232751/files/MadisonMoore_final.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.232751?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sesmero, Juan & Schoengold, Karina, 2013. "Structural Estimation of Demand for Irrigation Water Under Strategic Behavior," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150286, Agricultural and Applied Economics Association.
    2. Wallander, Steven & Hand, Michael S., 2011. "Measuring the Impact of the Environmental Quality Incentives Program (EQIP) on Irrigation Efficiency and Water Conservation," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103269, Agricultural and Applied Economics Association.
    3. Michael R. Moore, 1999. "Estimating Irrigators' Ability to Pay for Reclamation Water," Land Economics, University of Wisconsin Press, vol. 75(4), pages 562-578.
    4. Michael R. Moore & Noel R. Gollehon & Marc B. Carey, 1994. "Alternative models of input allocation in multicrop systems: Irrigation water in the Central Plains, United States," Agricultural Economics, International Association of Agricultural Economists, vol. 11(2-3), pages 143-158, December.
    5. Carlos A. Ulibarri & Harry S. Seely & David B. Willis, 1998. "Farm Profitability And Burec Water Subsidies: An Lp Look At A Region," Contemporary Economic Policy, Western Economic Association International, vol. 16(4), pages 442-451, October.
    6. Moore, Michael R. & Gollehon, Noel R. & Carey, Marc B., 1994. "Alternative models of input allocation in multicrop systems: irrigation water in the central plains, United States," Agricultural Economics, Blackwell, vol. 11(2-3), pages 143-158, December.
    7. Konyar, Kazim & Knapp, Keith C., 1990. "Dynamic Regional Analysis Of The California Alfalfa Market With Government Policy Impacts," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(1), pages 1-11, July.
    8. Speelman, Stijn & Buysse, Jeroen & Frija, Aymen & D'Haese, Marijke F.C. & D'Haese, Luc, 2008. "Estimating The Effect Of Water Charge Introduction At Small-Scale Irrigation Schemes In North West Province, South Africa," 107th Seminar, January 30-February 1, 2008, Sevilla, Spain 6646, European Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bontemps, Christophe & Couture, Stephane & Favard, Pascal, 2001. "Is The Irrigation Water Demand Really Convex?," 2001 Annual meeting, August 5-8, Chicago, IL 20508, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Phoebe Koundouri, 2004. "Current Issues in the Economics of Groundwater Resource Management," Journal of Economic Surveys, Wiley Blackwell, vol. 18(5), pages 703-740, December.
    3. Mullen, Jeffrey D. & Yu, Yingzhuo & Hoogenboom, Gerrit, 2009. "Estimating the demand for irrigation water in a humid climate: A case study from the southeastern United States," Agricultural Water Management, Elsevier, vol. 96(10), pages 1421-1428, October.
    4. Yu, Yingzhuo & Mullen, Jeffrey D. & Hoogenboom, Gerrit, 2006. "Effect of Water Price on the Multicrop Production Decision: Appling Fixed Allocatable Input Model in Georgia," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35479, Southern Agricultural Economics Association.
    5. Moolman, C.E. & Blignaut, J.N. & van Eyden, R., 2006. "Modelling the marginal revenue of water in selected agricultural commodities: A panel data approach," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 45(1), pages 1-11, March.
    6. Bazzani, Guido Maria & di Pasquale, S. & Gallerani, Vittorio & Viaggi, Davide, 2002. "Water Policy And The Sustainability Of Irrigated Systems In Italy," Working Papers 14401, University of Minnesota, Center for International Food and Agricultural Policy.
    7. Abayateye, F. & Skolrud, T. & Galinato, G., 2018. "Environmental Regulation Stringency and U.S. Agriculture," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277138, International Association of Agricultural Economists.
    8. Pongspikul, Tayatorn & McCann, Laura M., 2020. "Farmers’ Adoption of Pressure Irrigation Systems: The Case of Cotton Producers in the Southeastern versus Southwestern U.S," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304332, Agricultural and Applied Economics Association.
    9. Konyar, Kazim & Howitt, Richard E., 2000. "The Cost Of The Kyoto Protocol To U.S. Crop Production: Measuring Crop Price, Regional Acreage, Welfare, And Input Substitution Effects," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-21, December.
    10. Diersen, Matthew A., 2008. "Hay Price Forecasts at the State Level," 2008 Conference, April 21-22, 2008, St. Louis, Missouri 37600, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.
    11. Schmidt, Stefan & Seppelt, Ralf, 2018. "Information content of global ecosystem service databases and their suitability for decision advice," Ecosystem Services, Elsevier, vol. 32(PA), pages 22-40.
    12. Bazzani, Guido Maria & di Pasquale, S. & Gallerani, Vittorio & Viaggi, Davide, 2002. "Water Regulation and Irrigated Agriculture Under the EU Water Framework Directive," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24898, European Association of Agricultural Economists.
    13. George Frisvold & Charles Sanchez & Noel Gollehon & Sharon B. Megdal & Paul Brown, 2018. "Evaluating Gravity-Flow Irrigation with Lessons from Yuma, Arizona, USA," Sustainability, MDPI, vol. 10(5), pages 1-27, May.
    14. Jian Shi & JunJie Wu & Beau Olen, 2022. "Impacts of climate and weather on irrigation technology adoption and agricultural water use in the U.S. pacific northwest," Agricultural Economics, International Association of Agricultural Economists, vol. 53(3), pages 387-406, May.
    15. Qureshi, Muhammad Ejaz & Wegener, Malcolm K. & Qureshi, S.E. & Mason, F.M., 2002. "Implications of alternative mill mud management options in the Australian sugar industry," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 125149, Australian Agricultural and Resource Economics Society.
    16. Celine Nauges & Phoebe Koundouri & Vangelis Tzouvelekas, 2004. "Endogenous Technology Adoption Under Production Risk: Theory and Application to Irrigation Technology," Working Papers 0411, University of Crete, Department of Economics.
    17. Susanne Scheierling & David O. Treguer & James F. Booker, 2016. "Water Productivity in Agriculture: Looking for Water in the Agricultural Productivity and Efficiency Literature," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(03), pages 1-33, September.
    18. Pengfei Liu & Yu Wang & Wei Zhang, 2023. "The influence of the Environmental Quality Incentives Program on local water quality," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(1), pages 27-51, January.
    19. Liu, Pengfei & Wang, Yu & Zhang, Wei, 2018. "The Influence of Environmental Quality Incentives Program (EQIP) on Local Water Quality: Evidence from Monitoring Station Level Data," 2018 Annual Meeting, August 5-7, Washington, D.C. 274311, Agricultural and Applied Economics Association.
    20. Ying Zhou & Qingbo Zhou & Shouwen Gan & Liying Wang, 2019. "Agricultural Ecological Compensation Policy Models in Developed Countries and China's Policy Development Process," Biomedical Journal of Scientific & Technical Research, Biomedical Research Network+, LLC, vol. 14(4), pages 10803-10805, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ssaaea:232751. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.