The Implicit Value of Irrigation Through Parcel Level Hedonic Price Modeling

Steven D. Shultz and Nick Schmitz

No 61801, 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado from Agricultural and Applied Economics Association

Abstract: This paper relies on data associated 2,100 agricultural land sale transactions across two major Nebraska Watersheds (the Republican and Central Platte) over the 2000 to 2008 time period. The sales were spatially referenced (digitized into a GIS) in order to quantify and geo-spatially predict and map the implicit values of irrigation through the use of hedonic price modeling. Marginal implicit prices vary substantially across subwatersheds (natural resource districts), and the contribution of irrigation to sale prices is directly related to the extent to dependency of production agriculture on irrigation. This information is now currently being used to evaluate the economic efficiency of recent irrigation retirement programs and to help ensure that current and future retirement programs are cost-effective through targeting that retires irrigation land with the greatest hydrologic impact on water resources for the lowest cost.

Keywords: Farm Management; Production Economics; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 12
Date: 2010
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea10:61801

DOI: 10.22004/ag.econ.61801

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