Estimating Irrigators' Ability to Pay for Reclamation Water

Michael R. Moore

Land Economics, 1999, vol. 75, issue 4, 562-578

Abstract: The reclamation program sets prices based on irrigators' ability to pay for water. In contrast to the traditional approach (the farm budget study), this research develops a model of irrigator profit and ability to pay. The shadow price (marginal revenue) of water is shown to measure ability to pay per acre-foot of water. The model can be estimated econometrically with commonly available, although deficient, data. Using data from thirteen water districts in California, annual, district-level shadow price functions are derived for 1981-91 and compared to ability-to-pay estimates from a farm budget study of the districts.

JEL-codes: Q15 (search for similar items in EconPapers)
Date: 1999
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:uwp:landec:v:75:y:1999:i:4:p:562-578

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