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Shadow price of water for irrigation—A case of the High Plains

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  • Ziolkowska, Jadwiga R.

Abstract

The 2011 and 2012 droughts considerably affected the Ogallala Aquifer supplying irrigation water for agricultural production in the US High Plains (HP). Shrinking water resources and growing demand for water create a challenging tradeoff situation. This also poses a question about the value of water and efficient water allocation. Currently, water rates for irrigating crops paid by farmers do not reflect the actual value of water that can be expressed solely as a shadow price. Also studies are missing that would comprehensively compare different states and different crops in one methodological framework. This paper helps to fill this gap. Farm-budget residual valuation is applied to estimate the shadow price of water for irrigation in three High Plains states: Texas, Kansas and Nebraska, for five prevailing crops: corn, cotton, sorghum, soybean, and wheat.

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  • Ziolkowska, Jadwiga R., 2015. "Shadow price of water for irrigation—A case of the High Plains," Agricultural Water Management, Elsevier, vol. 153(C), pages 20-31.
    • Handle: RePEc:eee:agiwat:v:153:y:2015:i:c:p:20-31
    DOI: 10.1016/j.agwat.2015.01.024
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    Cited by:

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    8. Wang, Xialin & Wang, Jinxia & Sun, Tianhe & Zhang, Lijuan, 2024. "Optimizing the Groundwater-Food-Energy Nexus under Water Pricing Reform: Evidence from Northern China," 2024 Annual Meeting, July 28-30, New Orleans, LA 343825, Agricultural and Applied Economics Association.
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    12. Alves, Gabriel de Sampaio Morais & Fulginiti, Lilyan & Perrin, Richard & Braga, Marcelo José, 2021. "The Use Value of Irrigation Water for Brazilian Agriculture," 2021 Conference, August 17-31, 2021, Virtual 315861, International Association of Agricultural Economists.
    13. Jacqueline M. Vadjunec & Amy E. Frazier & Peter Kedron & Todd Fagin & Yun Zhao, 2018. "A Land Systems Science Framework for Bridging Land System Architecture and Landscape Ecology: A Case Study from the Southern High Plains," Land, MDPI, vol. 7(1), pages 1-20, February.
    14. Alcon, Francisco & Zabala, José A. & Martínez-García, Victor & Albaladejo, José A. & López-Becerra, Erasmo I. & de-Miguel, María D. & Martínez-Paz, José M., 2022. "The social wellbeing of irrigation water. A demand-side integrated valuation in a Mediterranean agroecosystem," Agricultural Water Management, Elsevier, vol. 262(C).
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    17. Walsh, Michael J. & Gerber Van Doren, Léda & Shete, Nilam & Prakash, Akshay & Salim, Usama, 2018. "Financial tradeoffs of energy and food uses of algal biomass under stochastic conditions," Applied Energy, Elsevier, vol. 210(C), pages 591-603.
    18. Aixi Han & Ao Liu & Zhenshan Guo & Yi Liang & Li Chai, 2023. "Measuring Gains and Losses in Virtual Water Trade from Environmental and Economic Perspectives," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 85(1), pages 195-209, May.
    19. Sampson, Gabriel S. & Hendricks, Nathan P. & Taylor, Mykel R., 2019. "Land market valuation of groundwater," Resource and Energy Economics, Elsevier, vol. 58(C).
    20. Ziolkowska, Jad R., 2018. "Profitability of Irrigation and Value of Water in the Southern High Plains," 2018 Annual Meeting, August 5-7, Washington, D.C. 274355, Agricultural and Applied Economics Association.

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