 Willingness to pay for irrigation water when groundwater is scarceT. Knapp, K. Kovacs, Qiuqiong Huang, C. Henry, Rodolfo Nayga, Jennie Popp and B. Dixon Agricultural Water Management, 2018, vol. 195, issue C, 133-141 Abstract: Conversion to surface water irrigation is one of the critical initiatives to address the decline in groundwater supply. A double-bounded dichotomous choice contingent valuation survey is used to estimate producers’ willingness to pay (WTP) for surface water supplied by irrigation districts in Arkansas, United States. The estimated mean WTP for irrigation water is 2.7¢/m3 ($33.21/acre-foot). Comparison indicates a significant share of producers are likely to have higher WTPs for surface water than the average pumping cost in the study area. Producers located in areas with less groundwater resources have higher WTPs. Producers that are more concerned with a water shortage occurring in the state in the next 10 years have higher WTPs. A somewhat unexpected result is that participation in the Conservation Reserve Program predicts lower WTPs. One possible explanation is that farmers see the transfer of land out of crop production as a more viable financial decision when groundwater supply decreases. Keywords: Willingness to pay for irrigation water; Groundwater shortage; Mississippi River valley alluvial aquifer (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:agiwat:v:195:y:2018:i:c:p:133-141 DOI: 10.1016/j.agwat.2017.10.013 Access Statistics for this article Agricultural Water Management is currently edited by B.E. Clothier, W. Dierickx, J. Oster and D. Wichelns More articles in Agricultural Water Management from Elsevier |
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