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The Effect of a Cap-and-Trade model for Groundwater use: A case study in the Texas Southern High Plains

Author

Listed:
  • Luitel, Kishor
  • Tewari, Rachna
  • Mitchell, Donna
  • Benson, Aaron
  • Johnson, Phillip

Abstract

This study evaluated the possibility of implementing a proposed cap and trade policy on water use in the Texas Southern High Plains. The results suggested that the decision of producers to enroll in a cap and trade policy introduced under a restricted 50/50 management plan, will be impacted by water levels in the aquifer and subsequently the viability of pumping irrigation water in the future. It is to be realized that while polices like these will have a definitive impact on the crop-mix and farm income of the region, they could still serve as useful tools to promote long term conservation of groundwater resources in the region.

Suggested Citation

  • Luitel, Kishor & Tewari, Rachna & Mitchell, Donna & Benson, Aaron & Johnson, Phillip, 2013. "The Effect of a Cap-and-Trade model for Groundwater use: A case study in the Texas Southern High Plains," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149993, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea13:149993
    DOI: 10.22004/ag.econ.149993
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    Keywords

    Agribusiness; Agricultural and Food Policy; Environmental Economics and Policy; Production Economics; Resource /Energy Economics and Policy;
    All these keywords.

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