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Comparing the Cost-Effectiveness of Water Conservation Policies in a Depleting Aquifer: A Dynamic Analysis of the Kansas High Plains

Author

Listed:
  • Ding, Ya
  • Peterson, Jeffrey M.

Abstract

This research analyzes two groundwater conservation policies in the Kansas High Plains located within the Ogallala aquifer: 1) cost-share assistance to increase irrigation efficiency; and 2) incentive payments to convert irrigated crop production to dryland crop production. To compare the cost-effectiveness of these two policies, a dynamic model simulated a representative irrigator's optimal technology choice, crop selection, and irrigation water use over time. The results suggest that the overall water-saving effectiveness can be improved when different policy tools are considered under different conditions. High prevailing crop prices greatly reduce irrigators' incentive to give up irrigation and therefore cause low enrollment and ineffectiveness of the incentive payment program. In areas with low aquifer-saturated thickness, the incentive payment program is more effective, whereas in areas with relatively higher water availability, the cost-share program could be a better choice.

Suggested Citation

  • Ding, Ya & Peterson, Jeffrey M., 2012. "Comparing the Cost-Effectiveness of Water Conservation Policies in a Depleting Aquifer: A Dynamic Analysis of the Kansas High Plains," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 44(2), pages 223-234, May.
    • Handle: RePEc:cup:jagaec:v:44:y:2012:i:02:p:223-234_00
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    Cited by:

    1. Nicolas E. Quintana Ashwell & Jeffrey M. Peterson, 2016. "The Impact of Irrigation Capital Subsidies on Common-Pool Groundwater Use and Depletion: Results for Western Kansas," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(03), pages 1-22, September.
    2. Boyer, Christopher N. & Larson, James A. & Roberts, Roland K. & McClure, Angela T. & Tyler, Donald D., 2014. "The impact of field size and energy cost on the profitability of supplemental corn irrigation," Agricultural Systems, Elsevier, vol. 127(C), pages 61-69.
    3. Xu, Ying & Kovacs, Kent & Nalley, Lanier & Popp, Michael, 2015. "Investment in on-farm reservoirs to align economic returns and ecosystem services," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196778, Southern Agricultural Economics Association.
    4. Quintana-Ashwell, Nicolas E. & Peterson, Jeffrey M., 2014. "The Dynamic Impact of Technical Progress on Common-pool Groundwater Use and Depletion," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196891, Southern Agricultural Economics Association.
    5. Kovacs, Kent & Popp, Michael & Bryce, Kristofer & West, Grant, 2015. "On-Farm Reservoir Adoption in the Presence of Spatially Explicit Groundwater Use and Recharge," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(01), pages 1-27.
    6. Boyer, Christopher N. & Larson, James A. & Roberts, Roland K. & McClure, Angela T. & Tyler, Donald D. & Smith, S. Aaron, "undated". "Probability of Irrigated Corn Being Profitable in a Humid Region," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162470, Southern Agricultural Economics Association.
    7. Suarez, Federico & Fulginiti, Lilyan & Perrin, Richard, 2015. "The Value of Water in Agriculture: The U.S. High Plains Aquifer," 2015 Conference, August 9-14, 2015, Milan, Italy 211644, International Association of Agricultural Economists.
    8. Kovacs, Kent & Mattia, Mancini & Christopher, Henry & Grant, West, 2015. "Spatial irrigation management to sustain groundwater and economic returns," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196758, Southern Agricultural Economics Association.
    9. Andrew B. Rosenberg, 2020. "Targeting of Water Rights Retirement Programs: Evidence from Kansas," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(5), pages 1425-1447, October.
    10. repec:ags:joaaec:163080 is not listed on IDEAS
    11. Perez-Quesada, Gabriela & Hendricks, Nathan P. & Steward, David R., 2020. "Quantifying the economic costs of High Plains Aquifer depletion," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304225, Agricultural and Applied Economics Association.
    12. Xu, Yuelu & Elbakidze, Levan, 2021. "Integrated assessment of N runoff in the Gulf of Mexico: an application of spatially explicit partial equilibrium and HAWQS models," 2021 Annual Meeting, August 1-3, Austin, Texas 313917, Agricultural and Applied Economics Association.
    13. Boyer, Christopher N. & Adams, Damian C. & Borisova, Tatiana, 2014. "Drivers of Price and Nonprice Water Conservation by Urban and Rural Water Utilities: An Application of Predictive Models to Four Southern States," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(1), pages 41-56, February.
    14. Lambert, Lixia H. & Yao, Yiqing & Levers, Lucia R., 2025. "Optimal cropping patterns and intertemporal groundwater usage under extraction constraints in Oklahoma’s panhandle," Agricultural Water Management, Elsevier, vol. 313(C).
    15. Xu, Yuelu & Elbakidze, Levan & Yen, Haw & Arnold, Jeffrey G. & Gassman, Philip W. & Hubbart, Jason & Strager, Michael P., 2022. "Integrated assessment of nitrogen runoff to the Gulf of Mexico," Resource and Energy Economics, Elsevier, vol. 67(C).
    16. Upendram, Sreedhar & Wibowo, Rulianda & Peterson, Jeffrey M., "undated". "Irrigation technology upgrade and water savings on the Kansas High Plains aquifer," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 197036, Southern Agricultural Economics Association.
    17. Quintana-Ashwell, Nicolas E. & Peterson, Jeffrey M., "undated". "Aquifer Depletion in the face of Climate Change and Technical Progress," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205882, Agricultural and Applied Economics Association.

    More about this item

    JEL classification:

    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)

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