IDEAS home Printed from https://ideas.repec.org/a/wly/ajagec/v102y2020i5p1425-1447.html
   My bibliography  Save this article

Targeting of Water Rights Retirement Programs: Evidence from Kansas

Author

Listed:
  • Andrew B. Rosenberg

Abstract

This article assesses the water use impacts of the Conservation Reserve Enhancement Program in the Upper Arkansas River basin in Kansas, a water rights retirement program aimed at reducing depletion of the High Plains Aquifer. First, I use a fixed effects model with matched samples of farmers to determine the effect of the program on the water use of individuals who retire acreage. I find that every acre authorized for irrigation that is retired in the program represents about 1.28 acre‐feet of water that would have been used each year. Further, I do not find evidence that farmers increase their water use in an effort to satisfy program eligibility requirements. Second, I estimate a probit regression to determine which factors most influence the probability that a farmer retires a water right. Using the results of the probit regression, I then simulate enrollment decisions outside of the policy region to assess how features of the program impact its cost effectiveness and how the policy design could be improved. I find that programs that base incentives on past levels of water extraction lead to more water use reductions per dollar paid.

Suggested Citation

  • Andrew B. Rosenberg, 2020. "Targeting of Water Rights Retirement Programs: Evidence from Kansas," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(5), pages 1425-1447, October.
    • Handle: RePEc:wly:ajagec:v:102:y:2020:i:5:p:1425-1447
    DOI: 10.1111/ajae.12102
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/ajae.12102
    Download Restriction: no
    File URL: https://libkey.io/10.1111/ajae.12102?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Mason, Charles F. & Plantinga, Andrew J., 2013. "The additionality problem with offsets: Optimal contracts for carbon sequestration in forests," Journal of Environmental Economics and Management, Elsevier, vol. 66(1), pages 1-14.
    2. Tsur, Yacov & Dinar, Ariel, 1997. "The Relative Efficiency and Implementation Costs of Alternative Methods for Pricing Irrigation Water," The World Bank Economic Review, World Bank, vol. 11(2), pages 243-262, May.
    3. David J. Lewis & Andrew J. Plantinga, 2007. "Policies for Habitat Fragmentation: Combining Econometrics with GIS-Based Landscape Simulations," Land Economics, University of Wisconsin Press, vol. 83(2), pages 109-127.
    4. 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.
    5. Ding, Ya & Peterson, Jeffrey M., 2012. "Comparing the Cost-Effectiveness of Water Conservation Policies in a Depleting Aquifer: A Dynamic Analysis of the Kansas High Plains," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 44(2), pages 223-234, May.
    6. Lewis, David J. & Plantinga, Andrew J. & Nelson, Erik & Polasky, Stephen, 2011. "The efficiency of voluntary incentive policies for preventing biodiversity loss," Resource and Energy Economics, Elsevier, vol. 33(1), pages 192-211, January.
    7. A. Colin Cameron & Douglas L. Miller, 2015. "A Practitioner’s Guide to Cluster-Robust Inference," Journal of Human Resources, University of Wisconsin Press, vol. 50(2), pages 317-372.
    8. Steven M. Smith & Krister Andersson & Kelsey C. Cody & Michael Cox & Darren Ficklin, 2017. "Responding to a Groundwater Crisis: The Effects of Self-Imposed Economic Incentives," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(4), pages 985-1023.
    9. Timothy C. Haab & Kenneth E. McConnell, 2002. "Valuing Environmental and Natural Resources," Books, Edward Elgar Publishing, number 2427.
    10. Tom Gleeson & Yoshihide Wada & Marc F. P. Bierkens & Ludovicus P. H. van Beek, 2012. "Water balance of global aquifers revealed by groundwater footprint," Nature, Nature, vol. 488(7410), pages 197-200, August.
    11. Randall G. Monger & Jordan F. Suter & Dale T. Manning & Joel P. Schneekloth, 2018. "Retiring Land to Save Water: Participation in Colorado’s Republican River Conservation Reserve Enhancement Program," Land Economics, University of Wisconsin Press, vol. 94(1), pages 36-51.
    12. Tsvetan Tsvetanov & Dietrich Earnhart, 2020. "The Effectiveness of a Water Right Retirement Program at Conserving Water," Land Economics, University of Wisconsin Press, vol. 96(1), pages 56-74.
    13. Mani Rouhi Rad & Dale T. Manning & Jordan F. Suter & Christopher Goemans, 2021. "Policy Leakage or Policy Benefit? Spatial Spillovers from Conservation Policies in Common Property Resources," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 8(5), pages 923-953.
    14. Paul J. Ferraro & Juan José Miranda, 2017. "Panel Data Designs and Estimators as Substitutes for Randomized Controlled Trials in the Evaluation of Public Programs," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(1), pages 281-317.
    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. Hrozencik, Aaron & Aillery, Marcel, 2021. "Trends in U.S. Irrigated Agriculture: Increasing Resilience Under Water Supply Scarcity," USDA Miscellaneous 316792, United States Department of Agriculture.
    2. R. Aaron Hrozencik & Jordan F. Suter & Paul J. Ferraro & Nathan Hendricks, 2024. "Social comparisons and groundwater use: Evidence from Colorado and Kansas," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(2), pages 946-966, March.
    3. Hrozencik, Aaron & Aillery, Marcel, 2021. "Trends in U.S. Irrigated Agriculture: Increasing Resilience Under Water Supply Scarcity," Economic Information Bulletin 327359, United States Department of Agriculture, Economic Research Service.
    4. R. Aaron Hrozencik & Dale T. Manning & Jordan F. Suter & Christopher Goemans, 2022. "Impacts of Block‐Rate Energy Pricing on Groundwater Demand in Irrigated Agriculture," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 404-427, January.
    5. Rouhi Rad, Mani & Suter, Jordan F. & Manning, Dale & Goemans, Christopher, 2020. "Subsidies vs. subsidies in the conservation of common property resources," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304401, Agricultural and Applied Economics Association.
    6. repec:ags:aaea22:335468 is not listed on IDEAS

    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. R. Aaron Hrozencik & Jordan F. Suter & Paul J. Ferraro & Nathan Hendricks, 2024. "Social comparisons and groundwater use: Evidence from Colorado and Kansas," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(2), pages 946-966, March.
    2. Dietrich Earnhart & Nathan P. Hendricks, 2023. "Adapting to water restrictions: Intensive versus extensive adaptation over time differentiated by water right seniority," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(5), pages 1458-1490, October.
    3. Daniel P. Bigelow & Todd Kuethe, 2020. "A Tale of Two Borders: Use‐Value Assessment, Land Development, and Irrigation Investment," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(5), pages 1404-1424, October.
    4. R. Aaron Hrozencik & Dale T. Manning & Jordan F. Suter & Christopher Goemans, 2022. "Impacts of Block‐Rate Energy Pricing on Groundwater Demand in Irrigated Agriculture," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 404-427, January.
    5. Louis Sears & Joseph Caparelli & Clouse Lee & Devon Pan & Gillian Strandberg & Linh Vuu & C. -Y. Cynthia Lin Lawell, 2018. "Jevons’ Paradox and Efficient Irrigation Technology," Sustainability, MDPI, vol. 10(5), pages 1-12, May.
    6. Rouhi Rad, Mani & Suter, Jordan F. & Manning, Dale & Goemans, Christopher, 2020. "Subsidies vs. subsidies in the conservation of common property resources," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304401, Agricultural and Applied Economics Association.
    7. Manning, Dale T. & Rad, Mani Rouhi & Suter, Jordan F. & Goemans, Christopher & Xiang, Zaichen & Bailey, Ryan, 2020. "Non-market valuation in integrated assessment modeling: The benefits of water right retirement," Journal of Environmental Economics and Management, Elsevier, vol. 103(C).
    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.
    9. 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.
    10. Hrozencik, Aaron & Aillery, Marcel, 2021. "Trends in U.S. Irrigated Agriculture: Increasing Resilience Under Water Supply Scarcity," Economic Information Bulletin 327359, United States Department of Agriculture, Economic Research Service.
    11. 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.
    12. Godwin Kwabla Ekpe & Anna A. Klis, 2023. "Spillover Effects in Irrigated Agriculture from the Groundwater Commons," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(3), pages 469-507, November.
    13. Wätzold, Frank & Drechsler, Martin, 2014. "Agglomeration payment, agglomeration bonus or homogeneous payment?," Resource and Energy Economics, Elsevier, vol. 37(C), pages 85-101.
    14. Smith, Steven M., 2018. "Economic incentives and conservation: Crowding-in social norms in a groundwater commons," Journal of Environmental Economics and Management, Elsevier, vol. 90(C), pages 147-174.
    15. Bujosa Bestard, Angel & Font, Antoni Riera, 2009. "Environmental diversity in recreational choice modelling," Ecological Economics, Elsevier, vol. 68(11), pages 2743-2750, September.
    16. Hrozencik, Aaron & Aillery, Marcel, 2021. "Trends in U.S. Irrigated Agriculture: Increasing Resilience Under Water Supply Scarcity," USDA Miscellaneous 316792, United States Department of Agriculture.
    17. Gebreegziabher, Z. & Mekonnen, A. & Beyene, A.D. & Hagos, F., 2018. "Valuation of access to irrigation water in rural Ethiopia: application of choice experiment and contingent valuation methods," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277168, International Association of Agricultural Economists.
    18. Boyer, Christopher N. & Adams, Damian C. & Borisova, Tatiana, 2014. "Drivers of Price and Nonprice Water Conservation by Urban and Rural Water Utilities: An Application of Predictive Models to Four Southern States," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(1), pages 41-56, February.
    19. Elena G. Irwin, 2010. "New Directions For Urban Economic Models Of Land Use Change: Incorporating Spatial Dynamics And Heterogeneity," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 65-91, February.
    20. Jeong, Dawoon & Sesmero, Juan Pablo, 2021. "Do changing weather patterns warrant more flexibility in cap-and-trade policy for irrigation water conservation? A case study in Mexico," 2021 Annual Meeting, August 1-3, Austin, Texas 314081, Agricultural and Applied Economics Association.

    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:wly:ajagec:v:102:y:2020:i:5:p:1425-1447. 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: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1111/(ISSN)1467-8276 .

    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.