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Irrigation And The Demand For Electricity

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  • Maddigan, Ruth J.
  • Chern, Wen S.
  • Gallagher, Colleen A.

Abstract

In order to anticipate the need for generating capacity, utility planners must estimate the future growth in electricity demand. The need for demand forecasts is no less important for the nation's Rural Electric Cooperatives (RECs) than it is for the investor-owned utilities. The RECs serve an historically agrarian region; therefore, the irrigation sector accounts for a significant portion of some. of the Cooperative's total demand. This paper develops a model of the RECs' demand for electricity used in irrigation. The model is a simultaneous-equations system which focuses on both the short-run utilization of electricity in irrigation and the long-run determination of the number of irrigators using electricity. Irrigation demand is described by a set of equations in which the quantity of electricity demanded, the average electricity price and the number of irrigation customers are endogenous. The structural equations are estimated using pooled state-level data for the period 1962-1977. In light of the model's results, the. impacts of changes in. relative energy prices on irrigation are examined.

Suggested Citation

  • Maddigan, Ruth J. & Chern, Wen S. & Gallagher, Colleen A., 1980. "Irrigation And The Demand For Electricity," 1980 Annual Meeting, July 27-30, Urbana-Champaign, Illinois 278920, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea80:278920
    DOI: 10.22004/ag.econ.278920
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    References listed on IDEAS

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    5. Martin Baughman & Paul Joskow, 1975. "The Effects of Fuel Prices on Residential Appliance Choice in the United States," Land Economics, University of Wisconsin Press, vol. 51(1), pages 41-49.
    6. Happ, Harry P. Jr. & Dobbins, Craig L., 1976. "Implications Of Rising Energy Costs For Irrigated Farms In The Oklahoma Panhandle," 1976 Annual Meeting, August 15-18, State College, Pennsylvania 283910, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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