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Using Hydro-Economic Modeling to Analyze the Allocation of Agricultural Water in the Southeastern U.S

Author

Listed:
  • He-Lambert, Lixia
  • English, Burton C.
  • Lambert, Dayton M.
  • Clark, Christopher D.
  • Papanicolaou, Thanos

Abstract

This paper summarizes the modeling framework used to determine the economic value of water for row crops using a partial equilibrium agricultural sector model designed for Tennessee and the Tennessee River Basin (TNAP). The objective of the paper is to outline a framework for determining water use by Tennessee’s agricultural sector, the relative value of water used by agriculture, and potential technology options for adapting to water scarcity with TNAP. The focus is on the major row crops produced in the region, specifically corn, soybeans, wheat, and cotton. Estimates of water availability are generated with predictive water balance models. Metrics for water use and demand are developed from three sources of data: a) primary and secondary farm-level data, b) regional economic-sectoral data, and c) cost-of-production data for crops commonly produced in the region. Shadow prices of water will be estimated by adjusting water quantities available for agricultural activities with the marginal productivity value of farm and non-farm activities.

Suggested Citation

  • He-Lambert, Lixia & English, Burton C. & Lambert, Dayton M. & Clark, Christopher D. & Papanicolaou, Thanos, 2016. "Using Hydro-Economic Modeling to Analyze the Allocation of Agricultural Water in the Southeastern U.S," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235675, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235675
    DOI: 10.22004/ag.econ.235675
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    References listed on IDEAS

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    1. Richard E. Howitt, 1995. "Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 329-342.
    2. Medellín-Azuara, J. & Howitt, R.E. & Harou, J.J., 2012. "Predicting farmer responses to water pricing, rationing and subsidies assuming profit maximizing investment in irrigation technology," Agricultural Water Management, Elsevier, vol. 108(C), pages 73-82.
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    Keywords

    Crop Production/Industries; Research Methods/ Statistical Methods; Resource /Energy Economics and Policy;
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