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An analysis of irrigated agricultural outcomes under the prior appropriation doctrine: hypotheses and applications

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  • W. Xu
  • S.E. Lowe
  • S. Zhang

Abstract

This article measures irrigated agricultural outcomes under the prior appropriation doctrine by developing a model of farmers' land allocations in response to water supply change. The modelling approach considers the institutional factors of water rights and permits the inclusive determination of water and land allocations. We utilize farm-level data of irrigated agriculture in Water District #1 in Idaho to examine the predictions from our theoretical model. The water rights priority date is consolidated at the farm level and used to differentiate farmers' responses. We test a set of hypotheses that relate to water supply and crop revenue. Our results suggest that the water rights priority has a profound impact on agricultural outcomes, indicating strong institutional effects and weak influence of market-based approaches. Farmers respond to both long-term and seasonal water supply change and variation, and they respond to seasonal water supply forecasts in varied ways depending on their water rights portfolios, thus signalling a disproportionate distribution of potential impacts of water supply change.

Suggested Citation

  • W. Xu & S.E. Lowe & S. Zhang, 2014. "An analysis of irrigated agricultural outcomes under the prior appropriation doctrine: hypotheses and applications," Applied Economics, Taylor & Francis Journals, vol. 46(22), pages 2639-2652, August.
    • Handle: RePEc:taf:applec:v:46:y:2014:i:22:p:2639-2652
    DOI: 10.1080/00036846.2014.907483
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    Cited by:

    1. Xinde Ji & Kelly M. Cobourn, 2018. "The Economic Benefits of Irrigation Districts under Prior Appropriation Doctrine: An Econometric Analysis of Agricultural Land‐Allocation Decisions," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(3), pages 441-467, September.
    2. Lee, Gi-Eu & Rollins, Kimberly S. & Singletary, Loretta, 2017. "An Empirical Analysis of Water Allocation Efficiency through the Prior Appropriation Doctrine: A Case Study in the Carson River Valley, Nevada," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258225, Agricultural and Applied Economics Association.
    3. Ji, Xinde & Cobourn, Kelly M., 2017. "Water Availability, Land Allocation, and the Role of Irrigation Districts under Prior Appropriation Doctrine," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258377, Agricultural and Applied Economics Association.
    4. Browne, Oliver R., 2017. "Do Secure Property Rights Affect Resource Allocation and Firm Production? Evidence from Water Right Adjudications in Idaho," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258498, Agricultural and Applied Economics Association.

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