Hostname: page-component-76fb5796d-vvkck Total loading time: 0 Render date: 2024-04-25T09:54:22.442Z Has data issue: false hasContentIssue false
  • English
  • Français

Comparing the Cost-Effectiveness of Water Conservation Policies in a Depleting Aquifer: A Dynamic Analysis of the Kansas High Plains

Published online by Cambridge University Press:  26 January 2015

Ya Ding  and
Jeffrey M. Peterson
Ya Ding
Affiliation:
School of Management and Economics, University of Electronic Science and Technology of China
Jeffrey M. Peterson
Affiliation:
Department of Agricultural Economics, Kansas State University, Manhattan, KS
Get access

Abstract

This research analyzes two groundwater conservation policies in the Kansas High Plains located within the Ogallala aquifer: 1) cost-share assistance to increase irrigation efficiency; and 2) incentive payments to convert irrigated crop production to dryland crop production. To compare the cost-effectiveness of these two policies, a dynamic model simulated a representative irrigator's optimal technology choice, crop selection, and irrigation water use over time. The results suggest that the overall water-saving effectiveness can be improved when different policy tools are considered under different conditions. High prevailing crop prices greatly reduce irrigators' incentive to give up irrigation and therefore cause low enrollment and ineffectiveness of the incentive payment program. In areas with low aquifer-saturated thickness, the incentive payment program is more effective, whereas in areas with relatively higher water availability, the cost-share program could be a better choice.

Keywords

cost-share programincentive paymentsOgallala aquiferdynamic optimizationgroundwater conservationQ30Q32Q38
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 44 , Issue 2 , May 2012 , pp. 223 - 234
Copyright
Copyright © Southern Agricultural Economics Association 2012

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Bellman, R.E.Dynamic Programming. Princeton, NJ: Princeton University Press, 1957.Google ScholarPubMed
Buller, O.H., and Williams, J.R.. “Effects of Energy and Commodity Prices on Irrigation in the High Plains.” Report of Progress No. 611, Agricultural Experiment Station, Kansas State University, December 1990.Google Scholar
Caswell, M., and Zilberman, D.. “The Effects of Well Depth and Land Quality on the Choice of Irrigation Technology”. American Journal of Agricultural Economics 68(1986):798–811.CrossRefGoogle Scholar
Crop Water Allocator Software, Kansas State University Research and Extension Mobile Irrigation Lab, 2004.Google Scholar
DeLano, D.R., and Williams, J.R.. Cost-Return Projections for Corn, Grain Sorghum, and Wheat under Alternative Irrigation Systems.” Staff Paper 97-3. Department of Agricultural Economics, Kansas State University, 1997.Google Scholar
Ding, Y. “The Choices of Irrigation Technologies and Groundwater Conservation in the Kansas High Plains: A Dynamic Analysis.” Ph.D. Dissertation, Kansas State University, Manhattan, KS, May 2005.Google Scholar
Dumler, T.J., O'Brien, D.M., Olson, B.L., and Martin, K.L.. Center-Pivot-Irrigated Corn Cost—Return Budget in Western Kansas. Kansas State University Agricultural Experiment Station and Cooperative Extension Service, Farm Management Guide, MF-585, October 2010a.Google Scholar
Dumler, T.J., O'Brien, D.M., Olson, B.L., and Martin, K.L.Center-Pivot-Irrigated Sorghum Cost-Return Budget in Western Kansas. Kansas State University Agricultural Experiment Station and Cooperative Extension Service, Farm Management Guide, MF-582, October 2010b.Google Scholar
Dumler, T.J., O'Brien, D.M., and Rogers, D.H.. Irrigation Capital Requirements and Energy Costs. Kansas State University Agricultural Experiment Station and Cooperative Extension Service, Farm Management Guide, MF-836, October 2007.Google Scholar
Gisser, M., and Sanchez, D.A.. “Competition versus Optimal Control in Groundwater Pumping”. Water Resources Research 16(1980):638-42.CrossRefGoogle Scholar
Hecox, G.R. Personal Communication, University of Kansas, July 2003.Google Scholar
Huffaker, R., and Whittlesey, N.. “Agricultural Water Conservation Legislation: Will It Save Water?” Choices (New York, NY.) 4(1995): 24–28.Google Scholar
Huffaker, R., and Whittlesey, N.. “A Theoretical Analysis of Economic Incentive Policies Encouraging Agricultural Water Conservation”. International Journal of Water Resources Development 19(2003):37–53.CrossRefGoogle Scholar
Kansas Geological Survey. An Atlas of the Kansas High Plains Aquifer, 2000. Internet site: www.kgs.ku.edu/HighPlains/atlas (Accessed August 8, 2011).Google Scholar
MATLAB 6.5. The Mathworks, Inc. 2002. Natick, MA.Google Scholar
Miranda, M.J., and Fackler, P.L.. Applied Computational Economics and Finance. Cambridge, MA: MIT Press, 2002.Google Scholar
Moore, M.R., Gollehon, N.R., and Carey, M.B.. “Multicrop Production Decisions in Western Irrigated Agriculture: The Role of Water Price.” American Journal of Agricultural Economics 76(1994):859-74.CrossRefGoogle Scholar
Negri, D., and Brooks, D.. “Determinants of Irrigation Technology Choice”. Western Journal of Agricultural Economics 15(1990):213-23.Google Scholar
Peterson, J.M., and Ding, Y.. “Economics Adjustments to Groundwater Depletion in The High Plains: Do Water-Saving Irrigation Systems Save Water?” American Journal of Agricultural Economics 87(2005): 148-60.CrossRefGoogle Scholar
Rogers, D.H., and Alam, M.. Comparing Irrigation Energy Costs. Kansas State University Agricultural Experiment Station and Cooperative Extension Service, Irrigation Management Series, MF-2360, January 1999.Google Scholar
Shah, F.A., Zilberman, D., and Chakravorty, U.. “Technology Adoption in the Presence of an Exhaustible Resource: The Case of Groundwater Extraction”. American Journal of Agricultural Economics 77,2(1995):291-99.CrossRefGoogle Scholar
Stone, L.R., Buller, O.H., Schlegel, A.J., Knapp, M.C., Perng, J., Khan, A.H., Manges, H.L., and Rogers, D.H.. Description and Use of Kansas Water Budget: Version T1 Software. Department of Agronomy, Manhattan, Kansas State University, 1995.Google Scholar
United Department of Energy. Energy Information Administration. Internet site: www.eia.gov (Accessed September 6, 2011).Google Scholar
Ward, F.A., and Pulido-Velazquez, M.. “Water Conservation in Irrigation Can Increase Water Use”. Proceedings of the National Academy of Sciences of the United States of America 105,47(2008): 18215-20.CrossRefGoogle ScholarPubMed
Wheeler, E., Golden, B., Johnson, J., and Peterson, J.. “Economic Efficiency of Short-Term versus Long-Term Water Rights Buyouts”. Journal of Agricultural and Applied Economics 40,2(2008):493–501.CrossRefGoogle Scholar
Williams, J., Llewelyn, R., Reed, M., Lamm, F., and Delano, D. “Economic Analysis of Alternative Irrigation Systems for Continuous Corn and Grain Sorghum in Western Kansas.” Report of Progress No. 766, Agricultural Experiment Station, Kansas State University, May 1997.Google Scholar