Water Resources Research · 2006 · 180 citations · 29 references
Social SciencesAgricultural EconomicsEconomicsEconometricsIrrigation ManagementMicroeconomicsDemand TheoryIrrigationIrrigation EconomicsWater EconomicsWater PricingWater Resource EconomicsAgricultural Water PricingEconometric Demand ModelsIrrigation Demand AnalysisIrrigation Demand EstimationIrrigation Water DemandIrrigation Water EconomicsMathematical Programming ModelsPrice Elasticity Modeling
The study estimates metaregression models to identify factors driving variation in empirical price elasticity estimates of irrigation water demand. The analysis draws elasticity estimates from 24 U.S. studies (since 1963) spanning mathematical programming, field experiments, and econometric approaches.
Metaregression models are estimated to investigate sources of variation in empirical estimates of the price elasticity of irrigation water demand. Elasticity estimates are drawn from 24 studies reported in the United States since 1963, including mathematical programming, field experiments, and econometric studies. The mean price elasticity is 0.48. Long‐run elasticities, those that are most useful for policy purposes, are likely larger than the mean estimate. Empirical results suggest that estimates may be more elastic if they are derived from mathematical programming or econometric studies and calculated at a higher irrigation water price. Less elastic estimates are found to be derived from models based on field experiments and in the presence of high‐valued crops.
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