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Modeling Agricultural Water Markets For Hydropower Production In The Pacific Northwest

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  • Houston, Jack E.
  • Whittlesey, Norman K.

Abstract

More than two-thirds of Pacific Northwest electricity is produced from hydropower on the Columbia River system. Irrigated agriculture in the region has a large impact on power supplies by diverting water that could be used for hydropower and using electricity for pumping the water. This paper examines the potential for water markets that would permit sales of water from agriculture to the hydropower sector for energy production. It is shown that both farmers and energy consumers could be made better off by adopting water markets to reallocate water among these competing uses.

Suggested Citation

  • Houston, Jack E. & Whittlesey, Norman K., 1986. "Modeling Agricultural Water Markets For Hydropower Production In The Pacific Northwest," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 11(2), pages 1-11, December.
    • Handle: RePEc:ags:wjagec:32241
    DOI: 10.22004/ag.econ.32241
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    References listed on IDEAS

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    1. Whittlesey, Norman K. & Hamilton, Joel, "undated". "Option Lease Water Markets in the Pacific Northwest," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270346, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Chatterjee, Bishu & Howitt, Richard E. & Sexton, Richard J., 1998. "The Optimal Joint Provision of Water for Irrigation and Hydropower," Journal of Environmental Economics and Management, Elsevier, vol. 36(3), pages 295-313, November.
    3. José A. Gómez-Limón & Yolanda Martínez Martínez, 2004. "Multicriteria Modelling of Irrigation Water Market at Basin Level," Economic Working Papers at Centro de Estudios Andaluces E2004/26, Centro de Estudios Andaluces.
    4. Zhang, Xiao & Li, Hong-Yi & Deng, Zhiqun Daniel & Ringler, Claudia & Gao, Yang & Hejazi, Mohamad I. & Leung, L. Ruby, 2018. "Impacts of climate change, policy and Water-Energy-Food nexus on hydropower development," Renewable Energy, Elsevier, vol. 116(PA), pages 827-834.
    5. Bosch, Darrell J., "undated". "Economic Benefits of Transferring Surface Water Rights from Agricultural to Non-Agricultural Use: A Virginia Example," 1989 Annual Meeting, July 30-August 2, Baton Rouge, Louisiana 270525, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Schaible, Glenn D. & Gollehon, Noel R. & Kramer, Mark S. & Aillery, Marcel P. & Moore, Michael R., 1995. "Economic Analysis of Selected Water Policy Options for the Pacific Northwest," Agricultural Economic Reports 308426, United States Department of Agriculture, Economic Research Service.
    7. Gomez-Limon, Jose A. & Martinez, Yolanda, 2006. "Multi-criteria modelling of irrigation water market at basin level: A Spanish case study," European Journal of Operational Research, Elsevier, vol. 173(1), pages 313-336, August.

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