THE INFLUENCE OF ON- AND OFF-FARM SURFACE WATER INVESTMENT ON GROUNDWATER EXTRACTION FROM AN AGRICULTURAL LANDSCAPE

Kent Kovacs and Alvaro Durand-Morat ()

Journal of Agricultural and Applied Economics, 2017, vol. 49, issue 3, 323-346

Abstract: The use of surface water to replace groundwater for irrigation is often viewed as an effective approach for reducing groundwater overdraft on an agricultural landscape. However, the availability of surface water does not necessarily lead to groundwater conservation in practice. The expected increase in the aquifer volume in the presence of surface water does not occur unless the off-farm water price is low enough to generate a significant shift away from groundwater. There is a change in the crop pattern toward more irrigation-intensive crops, and the net effect can be a rise in groundwater extraction.

Date: 2017
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