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Estimating Irrigators' Ability to Pay for Reclamation Water

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  • Michael R. Moore

Abstract

The reclamation program sets prices based on irrigators' ability to pay for water. In contrast to the traditional approach (the farm budget study), this research develops a model of irrigator profit and ability to pay. The shadow price (marginal revenue) of water is shown to measure ability to pay per acre-foot of water. The model can be estimated econometrically with commonly available, although deficient, data. Using data from thirteen water districts in California, annual, district-level shadow price functions are derived for 1981-91 and compared to ability-to-pay estimates from a farm budget study of the districts.

Suggested Citation

  • Michael R. Moore, 1999. "Estimating Irrigators' Ability to Pay for Reclamation Water," Land Economics, University of Wisconsin Press, vol. 75(4), pages 562-578.
    • Handle: RePEc:uwp:landec:v:75:y:1999:i:4:p:562-578
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    Cited by:

    1. Moolman, C.E. & Blignaut, J.N. & van Eyden, R., 2006. "Modelling the marginal revenue of water in selected agricultural commodities: A panel data approach," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 45(1), pages 1-11, March.
    2. Moore, Madison, 2015. "The Economics of Water: The Effects of Irrigation on Average Farm Revenue," SS-AAEA Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 2015, pages 1-13.
    3. Jian Shi & JunJie Wu & Beau Olen, 2022. "Impacts of climate and weather on irrigation technology adoption and agricultural water use in the U.S. pacific northwest," Agricultural Economics, International Association of Agricultural Economists, vol. 53(3), pages 387-406, May.

    More about this item

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment

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