IDEAS home Printed from https://ideas.repec.org/a/cup/jagaec/v26y1994i02p506-525_02.html
   My bibliography  Save this article

A Dynamic Analysis of the Impact of Water Quality Policies on Irrigation Investment and Crop Choice Decisions

Author

Listed:
  • Wu, JunJie
  • Mapp, Harry P.
  • Bernardo, Daniel J.

Abstract

A dynamic model is developed to analyze farmers' irrigation investment and crop choice decisions under alternative water quality protection policies. The model is applied to an empirical example in the Oklahoma High Plains. The choices of crops and irrigation systems and the resulting levels of irrigation, income, and nitrogen runoff and percolation are simulated over a ten-year period. An effluent tax on nitrogen runoff and percolation is shown to be effective in reducing nitrate pollution. The efficacy of cost sharing in adopting modern irrigation technologies and restrictions on irrigation water use depends on soil type. A tax on nitrogen use is shown to be the least effective policy.

Suggested Citation

  • Wu, JunJie & Mapp, Harry P. & Bernardo, Daniel J., 1994. "A Dynamic Analysis of the Impact of Water Quality Policies on Irrigation Investment and Crop Choice Decisions," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 26(2), pages 506-525, December.
    • Handle: RePEc:cup:jagaec:v:26:y:1994:i:02:p:506-525_02
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1074070800026420/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Segerson, Kathleen & Opaluch, James J., 1991. "Aggregate Analysis Of Site-Specific Pollution Problems: The Case Of Groundwater Contamination From Agriculture," Northeastern Journal of Agricultural and Resource Economics, Northeastern Agricultural and Resource Economics Association, vol. 20(1), pages 1-15, April.
    2. Negri, Donald H. & Brooks, Douglas H., 1990. "Determinants Of Irrigation Technology Choice," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 15(2), pages 1-12, December.
    3. Subhash C. Ray, 1982. "A Translog Cost Function Analysis of U.S. Agriculture, 1939–77," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 64(3), pages 490-498.
    4. Erik Lichtenberg, 1989. "Land Quality, Irrigation Development, and Cropping Patterns in the Northern High Plains," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(1), pages 187-194.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chowdhury, Manzoor E. & Lacewell, Ronald D., 1996. "Implications Of Alternative Policies On Nitrate Contamination Of Groundwater," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 21(1), pages 1-14, July.
    2. Wu, JunJie & Babcock, Bruce A., 1995. "Optimal Design Of A Voluntary Green Payment Program Under Asymmetric Information," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(2), pages 1-12, December.
    3. JunJie Wu & Bruce Babcock, 2001. "Spatial Heterogeneity and the Choice of Instruments to Control Nonpoint Pollution," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 18(2), pages 173-192, February.
    4. Chi H. Truong, 2014. "A Two Factor Model for Water Prices and Its Implications for Evaluating Real Options and Other Water Price Derivatives," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(1), pages 23-45, March.
    5. C.S. Kim & Glenn Schaible, 2000. "Economic Benefits Resulting From Irrigation Water Use: Theory and an Application to Groundwater Use," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(1), pages 73-87, September.
    6. Lee, Juhee & Hendricks, Nathan P., 2022. "Crop Choice Decisions in Response to Soil Salinization on Irrigated Land in California," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322602, Agricultural and Applied Economics Association.
    7. Apland, Jeffrey & Grainger, Corbett & Strock, Jeffrey, 2004. "Modeling Agricultural Production Considering Water Quality and Risk," Staff Papers 14240, University of Minnesota, Department of Applied Economics.
    8. Lee, Juhee & Hendricks, Nathan, 2022. "Irrigation Decisions in Response to Groundwater Salinity in Kansas," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 47(3), September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lichtenberg, Erik, 2013. "Optimal Investment in Precision Irrigation Systems: A Dynamic Intraseasonal Approach," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149920, Agricultural and Applied Economics Association.
    2. Pfeiffer, Lisa & Lin, C.-Y. Cynthia, 2014. "Does efficient irrigation technology lead to reduced groundwater extraction? Empirical evidence," Journal of Environmental Economics and Management, Elsevier, vol. 67(2), pages 189-208.
    3. Anderson, David P. & Wilson, Paul N. & Thompson, Gary D., 1999. "The Adoption And Diffusion Of Level Fields And Basins," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-18, July.
    4. Moreno, Georgina & Sunding, David L., 2003. "Simultaneous Estimation Of Technology Adoption And Land Allocation," 2003 Annual meeting, July 27-30, Montreal, Canada 22134, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Lichtenberg, Erik & Majsztrik, John & Saavoss, Monica, 2014. "Willingness to Pay for Sensor-Controlled Irrigation," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 168211, Agricultural and Applied Economics Association.
    6. repec:bla:canjag:v:58:y:2010:i:s1:p:433-461 is not listed on IDEAS
    7. Karina Schoengold & David L. Sunding, 2014. "The impact of water price uncertainty on the adoption of precision irrigation systems," Agricultural Economics, International Association of Agricultural Economists, vol. 45(6), pages 729-743, November.
    8. Arnberg, Soren & Hansen, Lars Garn, 2007. "The Dynamics of Farm Land Allocation - Short and Long Run Reactions in Long Micro Panel," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon 9978, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Wu, JunJie & Zilberman, David & Babcock, Bruce A., 2001. "Environmental and Distributional Impacts of Conservation Targeting Strategies," Journal of Environmental Economics and Management, Elsevier, vol. 41(3), pages 333-350, May.
    10. Alain Ayong Le Kama & Agnès Tomini, 2012. "Water Conservation versus Soil Salinity Control," Working Papers hal-04141151, HAL.
    11. Gregory S. Amacher & Erkki Koskela & Markku Ollikainen, 2004. "Deforestation, Production Intensity and Land Use under Insecure Property Rights," CESifo Working Paper Series 1128, CESifo.
    12. Barbara Langlois & Vincent Martinet, 2023. "Defining cost-effective ways to improve ecosystem services provision in agroecosystems," Review of Agricultural, Food and Environmental Studies, Springer, vol. 104(2), pages 123-165, June.
    13. Dinar, Ariel & Keck, Andrew, 1997. "Private irrigation investment in Colombia: effects of violence, macroeconomic policy, and environmental conditions," Agricultural Economics, Blackwell, vol. 16(1), pages 1-15, March.
    14. CARPENTIER, Alain & GOHIN, Alexandre & SCKOKAI, Paolo & THOMAS, Alban, 2015. "Economic modelling of agricultural production: past advances and new challenges," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement (RAEStud), Institut National de la Recherche Agronomique (INRA), vol. 96(1), March.
    15. Hirsch, Stefan & Barissoul, Ayoub & Möhring, Niklas & Koppenberg, Maximilian, 2024. "Market power, profitability and the decision to exit organic dairy farming in the EU," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344258, International Association of Agricultural Economists (IAAE).
    16. Carpentier, Alain & Letort, Elodie, 2009. "Modeling acreage decisions within the multinomial Logit framework," Working Papers 211011, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    17. Chakir, Raja & Lungarska, Anna, 2015. "Agricultural land rents in land use models: a spatial econometric analysis," 150th Seminar, October 22-23, 2015, Edinburgh, Scotland 212641, European Association of Agricultural Economists.
    18. Nicolas E. Quintana Ashwell & Jeffrey M. Peterson, 2016. "The Impact of Irrigation Capital Subsidies on Common-Pool Groundwater Use and Depletion: Results for Western Kansas," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(03), pages 1-22, September.
    19. Barraquand, F. & Martinet, V., 2011. "Biological conservation in dynamic agricultural landscapes: Effectiveness of public policies and trade-offs with agricultural production," Ecological Economics, Elsevier, vol. 70(5), pages 910-920, March.
    20. Kampas, Athanasios & Petsakos, Athanasios & Rozakis, Stelios, 2012. "Price induced irrigation water saving: Unraveling conflicts and synergies between European agricultural and water policies for a Greek Water District," Agricultural Systems, Elsevier, vol. 113(C), pages 28-38.
    21. Viaggi, Davide & Raggi, Meri & Gomez y Paloma, Sergio, 2011. "Farm-household investment behaviour and the CAP decoupling: Methodological issues in assessing policy impacts," Journal of Policy Modeling, Elsevier, vol. 33(1), pages 127-145, January.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jagaec:v:26:y:1994:i:02:p:506-525_02. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/aae .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.