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The Water Transfer Effects of Alternative Irrigation Institutions

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  • Narishwar Ghimire
  • Ronald C. Griffin

Abstract

Irrigation districts (IDs) use a large portion of the surface water rights in the American West. Microeconomic analysis of water use conditions within IDs indicates that it can be economically optimal for IDs to engage in less reallocative activities compared to private water rights holders. Institutional insights combine to show that the political orientation of IDs favors irrigation over irrigators in the sense that the rewards of water marketing tend to be incompletely captured. Based on an analysis of 38 years of time series water transfer data, we found that IDs underparticipate in agricultural-to-municipal water transfers relative to non-irrigation districts in terms of water right-weighted transfers. The results support further policy redesign if reallocation is to be viewed as a scarcity-solving strategy in ID-dominated regions.

Suggested Citation

  • Narishwar Ghimire & Ronald C. Griffin, 2014. "The Water Transfer Effects of Alternative Irrigation Institutions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(4), pages 970-990.
    • Handle: RePEc:oup:ajagec:v:96:y:2014:i:4:p:970-990.
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    File URL: http://hdl.handle.net/10.1093/ajae/aau018
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    Cited by:

    1. Xinde Ji & Kelly M. Cobourn, 2018. "The Economic Benefits of Irrigation Districts under Prior Appropriation Doctrine: An Econometric Analysis of Agricultural Land‐Allocation Decisions," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(3), pages 441-467, September.
    2. Browne, Oliver R. & Ji, Xinde James, 2023. "The Economic Value of Clarifying Property Rights: Evidence from Water in Idaho’s Snake River Basin," Journal of Environmental Economics and Management, Elsevier, vol. 119(C).
    3. Debaere, Peter & Li, Tianshu, 2017. "The Effects of Water Markets: Evidence from the Rio Grande," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259187, Agricultural and Applied Economics Association.
    4. Owusu-Sekyere, Enoch & Bibariwiah, Cindy & Owusu, Victor & Donkor, Emmanuel, 2021. "Farming under irrigation management transfer scheme and its impact on yield and net returns in Ghana," Land Use Policy, Elsevier, vol. 102(C).
    5. Chaudhry, Anita M. & Fairbanks, Dean H.K. & Caldwell, Alyssa, 2015. "Determinants of Water Sales During Droughts: Evidence from Rice Farm-Level Data in California," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205446, Agricultural and Applied Economics Association.

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