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Value Of Irrigation Water In The Middle Atlantic States: An Econometric Approach

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  • Madariaga, Bruce
  • McConnell, Kenneth E.

Abstract

Estimation of the economic value of irrigation water is complicated by a lack of data on the price or marginal cost of water. Through econometric estimation of an aggregate total value product function, this paper obtains marginal irrigation water value estimates for the Middle Atlantic region. Additionally, the impact of temperature and soil conditions on aggregate production within the region is estimated. Ridge regression and covariance analysis are employed to deal with problems of multicollinearity and simultaneous equation bias, respectively. Estimates indicate a substantial and growing return to irrigation within the region.

Suggested Citation

  • Madariaga, Bruce & McConnell, Kenneth E., 1984. "Value Of Irrigation Water In The Middle Atlantic States: An Econometric Approach," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 16(2), pages 1-8, December.
    • Handle: RePEc:ags:sojoae:29736
    DOI: 10.22004/ag.econ.29736
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    References listed on IDEAS

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    1. Lynne, Gary D., 1978. "Issues and Problems in Agricultural Water Demand Estimation from Secondary Data Sources," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 10(2), pages 101-106, December.
    2. Lynne, Gary D., 1978. "Issues And Problems In Agricultural Water Demand Estimation From Secondary Data Sources," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 10(2), pages 1-6, December.
    3. William G. Brown & Bruce R. Beattie, 1975. "Improving Estimates of Economic Parameters by Use of Ridge Regression with Production Function Applications," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 57(1), pages 21-32.
    4. Shumway, C. Richard, 1973. "Derived Demand for Irrigation Water: The California Aqueduct," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 5(2), pages 195-200, December.
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    Cited by:

    1. Strand, Jon, 2010. "The full economic cost of groundwater extraction," Policy Research Working Paper Series 5494, The World Bank.
    2. Gollehon, Noel R. & Moore, Michael R. & Negri, Donald H., 1990. "Production Functions Of Western Irrigated Crops," 1990 Annual meeting, August 5-8, Vancouver, Canada 270992, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Suarez, Federico & Fulginiti, Lilyan & Perrin, Richard, 2015. "The Value of Water in Agriculture: The U.S. High Plains Aquifer," 2015 Conference, August 9-14, 2015, Milan, Italy 211644, International Association of Agricultural Economists.

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    Resource /Energy Economics and Policy;

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