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The allocative efficiency and conservation potential of water laws encouraging investments in on‐farm irrigation technology
Author(s) -
Huffaker Ray,
Whittlesey Norman
Publication year - 2000
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.2000.tb00092.x
Subject(s) - allocative efficiency , water conservation , irrigation , economics , irrigation district , statute , upstream (networking) , natural resource economics , agriculture , legislature , water right , incentive , business , water resource management , water resources , environmental science , microeconomics , ecology , history , archaeology , political science , law , biology , computer network , computer science
Agricultural water conservation statutes are emerging in the West encouraging private irrigators to improve on‐farm irrigation efficiency as a basinwide conservation measure. We investigate whether private improvements promote the economic efficiency and conservation of water use basinwide under a wide variety of hydroeconomic circumstances. The standard of efficiency is how an irrigation district manager should optimally invest in improving the irrigation efficiencies of individual farms located along a stream while internalizing intrabasin allocative externalities of these investments. The results indicate that the popular Oregon legislative model may be the least effective in conserving water and promoting economically efficient water allocation.