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Irrigation water demand: A meta‐analysis of price elasticities
Author(s) -
Scheierling Susanne M.,
Loomis John B.,
Young Robert A.
Publication year - 2006
Publication title -
water resources research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.863
H-Index - 217
eISSN - 1944-7973
pISSN - 0043-1397
DOI - 10.1029/2005wr004009
Subject(s) - elasticity (physics) , price elasticity of demand , econometrics , economics , irrigation , econometric model , mathematics , microeconomics , ecology , materials science , composite material , biology
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.