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Transfer Restrictions and Misallocations of Irrigation Water
Author(s) -
Gardner B. Delworth,
Fullerton Herbert H.
Publication year - 1968
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1238259
Subject(s) - acre , irrigation , renting , flexibility (engineering) , environmental science , water transfer , transfer (computing) , variance (accounting) , agricultural economics , economics , econometrics , mathematics , statistics , water resource management , agricultural science , computer science , engineering , ecology , civil engineering , accounting , parallel computing , biology
The hypothesis of the study is that allowing intercompany transfers of irrigation water would significantly increase the marginal value product of water. Regression analysis was used to explain a time series of rental prices for an area in Utah where four companies freely exchanged water after a long period during which only intracompany transfers were permitted. Water delivered per irrigated acre and type of transfer policy in use were the statistically significant variables and explained 89 percent of the variance in rental price. Covariance analysis indicated that the greater flexibility in transfer increased the real price of water per acre‐foot by $1.84.