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Reallocating Water from Agriculture to the Environment under a Voluntary Purchase Program

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  • Sabrina Isé
  • David L. Sunding

Abstract

Pressure is increasing to reallocate water from agriculture to the environment. This article examines the performance of a federal program in Nevada's Lahontan Valley under which water rights are purchased from willing sellers for environmental restoration. Based on a data set combining information on growers' personal and financial characteristics with physical characteristics of their farms, a model is estimated that explains who sells their water rights to the government. Results indicate that personal characteristics, especially short-term financial constraints, have a powerful influence on the sales decision. This finding suggests that the environmental agencies may wish to more actively target growers operating on poor quality soils or on the periphery of irrigation projects to attain a more efficient outcome.

Suggested Citation

  • Sabrina Isé & David L. Sunding, 1998. "Reallocating Water from Agriculture to the Environment under a Voluntary Purchase Program," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 20(1), pages 214-226.
    • Handle: RePEc:oup:revage:v:20:y:1998:i:1:p:214-226.
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    File URL: http://hdl.handle.net/10.2307/1349546
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    Citations

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    Cited by:

    1. Lambert, David K. & Shaw, W. Douglass, 2000. "Agricultural And Recreational Impacts From Surface Flow Changes Due To Gold Mining Operations," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 25(2), pages 1-14, December.
    2. Juliane Haensch & Sarah Ann Wheeler & Alec Zuo & Henning Bjornlund, 2016. "The Impact of Water and Soil Salinity on Water Market Trading in the Southern Murray–Darling Basin," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(01), pages 1-26, March.
    3. Juliane Haensch & Sarah Ann Wheeler & Alec Zuo, 2021. "Explaining permanent and temporary water market trade patterns within local areas in the southern Murray–Darling Basin," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(2), pages 318-348, April.
    4. Larkin, Sherry L. & Keithly, Walter R., Jr. & Adams, Charles M. & Kazmierczak, Richard F., Jr., 2004. "Buyback Programs for Capacity Reduction in the U.S. Atlantic Shark Fishery," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 36(2), pages 1-16, August.
    5. Moreno, Georgina, 2005. "Intrafirm Effects on Water Conservation in Agriculture," 2005 Annual meeting, July 24-27, Providence, RI 19166, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. S. Wheeler & A. Zuo & H. Bjornlund & C. Lane Miller, 2012. "Selling the Farm Silver? Understanding Water Sales to the Australian Government," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 52(1), pages 133-154, May.
    7. Iglesias, Eva & Garrido, Alberto & Gomez-Ramos, Almudena, 2003. "Evaluation of drought management in irrigated areas," Agricultural Economics, Blackwell, vol. 29(2), pages 211-229, October.
    8. Sarah Wheeler & Dustin Garrick & Adam Loch & Henning Bjornlund, 2011. "Incorporating Temporary Trade with the Buy-Back of Water Entitlements inAustralia," Centre for Water Economics, Environment and Policy Papers 1101, Centre for Water Economics, Environment and Policy, Crawford School of Public Policy, The Australian National University.
    9. Wheeler, Sarah Ann & Zuo, Alec & Bjornlund, Henning, 2014. "Investigating the delayed on-farm consequences of selling water entitlements in the Murray-Darling Basin," Agricultural Water Management, Elsevier, vol. 145(C), pages 72-82.
    10. Alec Zuo & Sarah Ann Wheeler & Peter Boxall & W. L. (Vic) Adamowicz & Darla Hatton MacDonald, 2015. "Identifying Water Prices at which Australian Farmers Will Exit Irrigation: Results of a Stated Preference Survey," The Economic Record, The Economic Society of Australia, vol. 91(S1), pages 109-123, June.

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