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Productive Efficiency in Water Usage: An Analysis of Differences among Farm Types and Sizes in Georgia

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  • Moore, Rebecca
  • Price, Joseph

Abstract

In Georgia, the price of irrigation water is equal to the cost of extraction, including pumping and diversion, storage, treatment, and delivery costs. These water-pricing conditions are repeated in locales around the world. In lieu of established water markets, water use and its efficient use are driven more by farm-level characteristics and management strategies than by the resource price. The purpose of the research presented herein is to examine what factors guide Georgia farmers’ water use decisions. Using data envelopment analysis (DEA) to calculate technical water use efficiency scores, a second step Tobit model is estimated to determine the effect of farm type and farm size. A farms’ use of conservation tillage or organic farming positively affected their water use efficiency, while farms of smaller size or solely owned were more inefficient in water use.

Suggested Citation

  • Moore, Rebecca & Price, Joseph, 2009. "Productive Efficiency in Water Usage: An Analysis of Differences among Farm Types and Sizes in Georgia," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49482, Agricultural and Applied Economics Association.
  • Handle: RePEc:ags:aaea09:49482
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    File URL: http://purl.umn.edu/49482
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    References listed on IDEAS

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    1. Matthew J. Kotchen & Michael R. Moore & Frank Lupi & Edward S. Rutherford, 2006. "Environmental Constraints on Hydropower: An Ex Post Benefit-Cost Analysis of Dam Relicensing in Michigan," Land Economics, University of Wisconsin Press, vol. 82(3), pages 384-403.
    2. Edward B. Barbier, 1996. "The Economics of Soil Erosion: Theory, Methodology and Examples," EEPSEA Special and Technical Paper sp199601t2, Economy and Environment Program for Southeast Asia (EEPSEA), revised Jan 1996.
    3. Dixon, J.A. & Talbot, L.M. & Le Moigne, G.J-M., 1989. "Dams And The Environment - Considerations In World Bank Projects," Papers 110, World Bank - Technical Papers.
    4. Ribaudo, Marc & Horan, Richard D. & Smith, Mark E., 1999. "Economics of Water Quality Protection from Nonpoint Sources: Theory and Practice," Agricultural Economics Reports 33913, United States Department of Agriculture, Economic Research Service.
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    Cited by:

    1. Wheeler, Sarah Ann & Zuo, Alec & Loch, Adam, 2015. "Watering the farm: Comparing organic and conventional irrigation water use in the Murray–Darling Basin, Australia," Ecological Economics, Elsevier, vol. 112(C), pages 78-85.

    More about this item

    Keywords

    technical/productive water use efficiency; organic agriculture; DEA; Production Economics; Productivity Analysis; Resource /Energy Economics and Policy;

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