IDEAS home Printed from https://ideas.repec.org/a/eee/forpol/v109y2019ics1389934118305331.html
   My bibliography  Save this article

The impact of forest restoration on agriculture in the Verde River watershed, Arizona, USA

Author

Listed:
  • Zhao, Xiaobing
  • Du, Ding
  • Xiong, Jun
  • Springer, Abraham
  • Masek Lopez, Sharon R.
  • Winkler, Blake
  • Hubler, Kenedy

Abstract

Known as the Four Forest Restoration Initiative (4FRI), the US Forest Service is planning a large-scale restoration of ponderosa pine forests in the Verde River watershed in central Arizona, USA. This paper uses a reduced-form econometric regression model with 1969–2010 time-series data to estimate the economic benefits of the increased water yield due to planned forest restoration of the first phase of 4FRI. We split the data sample into 1969–1989 and 1990–2010 time periods, and conclude during the second time period, water use is statistically and economically significant. This is consistent with the reality that the Verde River watershed has been in drought since the early 1990s. Our central finding is, if water use increases by 1%, the farm income will increase by 1.33%. If a 5–10% increase in water yield caused by the first phase of the 4FRI is all used by agriculture, agricultural income will increase by 6.65–13.3% annually.

Suggested Citation

  • Zhao, Xiaobing & Du, Ding & Xiong, Jun & Springer, Abraham & Masek Lopez, Sharon R. & Winkler, Blake & Hubler, Kenedy, 2019. "The impact of forest restoration on agriculture in the Verde River watershed, Arizona, USA," Forest Policy and Economics, Elsevier, vol. 109(C).
    • Handle: RePEc:eee:forpol:v:109:y:2019:i:c:s1389934118305331
    DOI: 10.1016/j.forpol.2019.101999
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1389934118305331
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.forpol.2019.101999?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Venus Khim-Sen Liew, 2004. "Which Lag Length Selection Criteria Should We Employ?," Economics Bulletin, AccessEcon, vol. 3(33), pages 1-9.
    2. Solange Filoso & Maíra Ometto Bezerra & Katherine C B Weiss & Margaret A Palmer, 2017. "Impacts of forest restoration on water yield: A systematic review," PLOS ONE, Public Library of Science, vol. 12(8), pages 1-26, August.
    3. John R. Hildebrand, 1960. "Some Difficulties with Empirical Results From Whole-Farm Cobb-Douglas-Type Production Functions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 42(4), pages 897-904.
    4. Chantee Lewis, 1974. "Simultaneous equation production functions (cobb‐douglas type) for decisions pertaining to sea‐based tactical air resources," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 21(3), pages 491-503, September.
    5. Du, Ding & Zhao, Xiaobing & Huang, Ruihong, 2017. "The impact of climate change on developed economies," Economics Letters, Elsevier, vol. 153(C), pages 43-46.
    6. Sean D. Campbell & Francis X. Diebold, 2005. "Weather Forecasting for Weather Derivatives," Journal of the American Statistical Association, American Statistical Association, vol. 100, pages 6-16, March.
    7. Huang, Haixiao & Khanna, Madhu, 2010. "An Econometric Analysis of U.S. Crop Yield and Cropland Acreage: Implications for the Impact of Climate Change," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61527, Agricultural and Applied Economics Association.
    8. Zhao, Xiaobing & Fletcher, Jerald J., 2011. "A spatial–temporal optimization approach to watershed management: Acid mine drainage treatment in the Cheat River watershed, WV, USA," Ecological Modelling, Elsevier, vol. 222(9), pages 1580-1591.
    9. Jesus Felipe & F. Gerard Adams, 2005. ""A Theory of Production" The Estimation of the Cobb-Douglas Function: A Retrospective View," Eastern Economic Journal, Eastern Economic Association, vol. 31(3), pages 427-445, Summer.
    10. Ng, Pin & Zhao, Xiaobing, 2011. "No matter how it is measured, income declines with global warming," Ecological Economics, Elsevier, vol. 70(5), pages 963-970, March.
    11. Douglas, Paul H, 1976. "The Cobb-Douglas Production Function Once Again: Its History, Its Testing, and Some New Empirical Values," Journal of Political Economy, University of Chicago Press, vol. 84(5), pages 903-915, October.
    12. Newey, Whitney & West, Kenneth, 2014. "A simple, positive semi-definite, heteroscedasticity and autocorrelation consistent covariance matrix," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 33(1), pages 125-132.
    13. Du, Ding & Zhao, Xiaobing & Huang, Ruihong, 2017. "The Impact of Climate Change on Developed Economies," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258123, Agricultural and Applied Economics Association.
    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. Baarsch, Florent & Granadillos, Jessie R. & Hare, William & Knaus, Maria & Krapp, Mario & Schaeffer, Michiel & Lotze-Campen, Hermann, 2020. "The impact of climate change on incomes and convergence in Africa," World Development, Elsevier, vol. 126(C).
    2. Roman G. Smirnov & Kunpeng Wang, 2019. "The Cobb-Douglas production function revisited," Papers 1910.06739, arXiv.org, revised Oct 2019.
    3. Helene Hamisultane, 2010. "Utility-based pricing of weather derivatives," The European Journal of Finance, Taylor & Francis Journals, vol. 16(6), pages 503-525.
    4. Afrifa, Godfred Adjapong & Tingbani, Ishmael & Yamoah, Fred & Appiah, Gloria, 2020. "Innovation input, governance and climate change: Evidence from emerging countries," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    5. Donadelli, Michael & Grüning, Patrick & Jüppner, Marcus & Kizys, Renatas, 2021. "Global temperature, R&D expenditure, and growth," Energy Economics, Elsevier, vol. 104(C).
    6. Michael Donadelli & Marcus Jüppner & Antonio Paradiso & Christian Schlag, 2021. "Computing Macro-Effects and Welfare Costs of Temperature Volatility: A Structural Approach," Computational Economics, Springer;Society for Computational Economics, vol. 58(2), pages 347-394, August.
    7. Nhlangwini, Pamela & Mongale, Itumeleng Pleasure, 2019. "Mining Production and Economic Growth Nexus," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 53(3), pages 103-116.
    8. Tse, Chin-Bun & Rodgers, Timothy & Niklewski, Jacek, 2014. "The 2007 financial crisis and the UK residential housing market: Did the relationship between interest rates and house prices change?," Economic Modelling, Elsevier, vol. 37(C), pages 518-530.
    9. Jesus Felipe & John McCombie, 2010. "On Accounting Identities, Simulation Experiments and Aggregate Production Functions: A Cautionary Tale for (Neoclassical) Growth Theorists," Chapters, in: Mark Setterfield (ed.), Handbook of Alternative Theories of Economic Growth, chapter 9, Edward Elgar Publishing.
    10. Philip A. White & Durban G. Keeler & Daniel Sheanshang & Summer Rupper, 2022. "Improving piecewise linear snow density models through hierarchical spatial and orthogonal functional smoothing," Environmetrics, John Wiley & Sons, Ltd., vol. 33(5), August.
    11. Tang, Chor Foon, 2008. "A re-examination of the role of foreign direct investment and exports in Malaysia's economic growth," MPRA Paper 38536, University Library of Munich, Germany.
    12. Burhan Can Karahasan & Mehmet Pinar, 2023. "Climate change and spatial agricultural development in Turkey," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1699-1720, August.
    13. José Francisco Bellod Redondo, 2011. "La función de producción de Cobb-Douglas y la economía española," Revista de Economía Crítica, Asociación de Economía Crítica, vol. 12, pages 9-38.
    14. Majid Khan & Abdul Rashid, 2022. "(A)symmetry effects of climate changes on economic growth: a panel data analysis," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 69(4), pages 571-607, December.
    15. Shahiduzzaman, Md. & Alam, Khorshed, 2014. "Information technology and its changing roles to economic growth and productivity in Australia," Telecommunications Policy, Elsevier, vol. 38(2), pages 125-135.
    16. Carolyn Chisadza & Matthew Clance & Xin Sheng & Rangan Gupta, 2023. "Climate Change and Inequality: Evidence from the United States," Sustainability, MDPI, vol. 15(6), pages 1-11, March.
    17. Xuezhi Qin & Benson Otieno Ndiege, 2013. "Role of Financial Development in Economic Growth: Evidence from Savings and Credits Cooperative Societies in Tanzania," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 4(2), pages 115-125, April.
    18. Veronica Alampi Sottini & Elena Barbierato & Iacopo Bernetti & Irene Capecchi, 2021. "Impact of Climate Change on Wine Tourism: An Approach through Social Media Data," Sustainability, MDPI, vol. 13(13), pages 1-18, July.
    19. Jael, Paul, 2019. "Does Marginal Productivity Mean Anything in Real Economic Life ?," MPRA Paper 97968, University Library of Munich, Germany, revised Jan 2020.
    20. Tsigaris, Panagiotis & Wood, Joel, 2019. "The potential impacts of climate change on capital in the 21st century," Ecological Economics, Elsevier, vol. 162(C), pages 74-86.

    More about this item

    Keywords

    Agricultural irrigation; Ecological services; Forest restoration; Time-series model; Verde River; Water supply;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

    Statistics

    Access and download statistics

    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:eee:forpol:v:109:y:2019:i:c:s1389934118305331. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/forpol .

    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.