AgEcon Search (University of Minnesota, USA) · 2012 · 85 citations · 20 references
Precision AgricultureEngineeringAgricultural EconomicsEnvironmental EconomicsIrrigation CessationDemand ElasticityExtensive MarginsIrrigation ManagementAgricultural Water ManagementFixed Effects EstimationGeographyIrrigationIrrigation Water DemandWater PricingWater DemandWater ResourcesBusinessWater ManagementNatural Resource EconomicsWater Valuation
Pumping costs vary over time with energy prices and across space with water depth. The study estimates irrigation water demand elasticity using 16‑year Kansas field‑level panel data, then applies the estimates to compute costs of reducing irrigation via pricing, cessation, and intensity‑reduction programs. Using fixed‑effects models that control for field‑farmer, year, and land‑use factors, the authors estimate irrigation water demand elasticity and calculate the cost implications of water‑reduction strategies.
Irrigation water demand is estimated using field-level panel data from Kansas over 16 years. The cost of pumping varies over time due to changes in energy prices and across space due to differences in the depth to water. Exploiting this variation allows us to estimate the demand elasticity while controlling for field-farmer and year fixed effects. Fixed effects also allow us to control for land use without an instrument or assumptions about the distribution of errors. Our estimates of water demand are used to calculate the cost of reducing irrigation water use through water pricing, irrigation cessation, and intensity-reduction programs.
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The Theory of Environmental Policy
Thomas D. Crocker, Alan Randall, William J. Baumöl et al. · Land Economics · 1976 · 2.3K citations
Engineering, Sustainable Development, Environmental Economics +17
Generalized Econometric Models with Selectivity
Lung-Fei Lee · Econometrica · 1983 · 1.4K citations