Influence of Climate Variability on the Market Price of Water in the Gila-San Francisco Basin
Jennifer L. Pullen and
Bonnie G. Colby
Journal of Agricultural and Resource Economics, 2008, vol. 33, issue 3
Emerging water markets in the western United States have slowly developed as usage patterns have changed over time. This article develops an econometric model for the Gila-San Francisco Basin. Results indicate the market price of water has risen in response to drought and market conditions. Analysis shows a statistically significant relationship between the price and quantity of water transferred, year the transaction occurred, location where the transaction occurred, new use of the water right, and whether the transaction occurred during a drought year. Using the Standard Precipitation Index, we find negotiated prices are higher during dry years.
Keywords: Drought; econometrics; hedonic; market price; Palmer Hydrological Drought Index; Standard Precipitation Index; water; western United States; Resource /Energy Economics and Policy (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:ags:jlaare:46568
Access Statistics for this article
Journal of Agricultural and Resource Economics is currently edited by December
More articles in Journal of Agricultural and Resource Economics from Western Agricultural Economics Association
Contact information at EDIRC.
Series data maintained by AgEcon Search ().