Willingness to pay for irrigation water when groundwater is scarce

T. Knapp; K. Kovacs; Q. Huang; C. Henry; R. Nayga; J. Popp; B. Dixon

doi:10.1016/j.agwat.2017.10.013

Willingness to pay for irrigation water when groundwater is scarce

T. Knapp, K. Kovacs, Q. Huang, C. Henry, R. Nayga, J. Popp, B. Dixon

Department of Food and Resource Economics

Research output: Contribution to journal › Article › peer-review

23 Citations (Scopus)

Abstract

Conversion to surface water irrigation is one of the critical initiatives to address the decline in groundwater supply. A double-bounded dichotomous choice contingent valuation survey is used to estimate producers’ willingness to pay (WTP) for surface water supplied by irrigation districts in Arkansas, United States. The estimated mean WTP for irrigation water is 2.7 ¢/m³ ($33.21/acre-foot). Comparison indicates a significant share of producers are likely to have higher WTPs for surface water than the average pumping cost in the study area. Producers located in areas with less groundwater resources have higher WTPs. Producers that are more concerned with a water shortage occurring in the state in the next 10 years have higher WTPs. A somewhat unexpected result is that participation in the Conservation Reserve Program predicts lower WTPs. One possible explanation is that farmers see the transfer of land out of crop production as a more viable financial decision when groundwater supply decreases.

Original language	English
Pages (from-to)	133-141
Number of pages	9
Journal	Agricultural Water Management
Volume	195
DOIs	https://doi.org/10.1016/j.agwat.2017.10.013
Publication status	Published - 2018 Jan 1

Bibliographical note

Funding Information:
This project was supported by the Arkansas Rice Research and Promotion Board, Arkansas Soybean Promotion Board, United Soybean Board, and Mid-South Soybean Board.

Publisher Copyright:
© 2017 Elsevier B.V.

Keywords

Groundwater shortage
Mississippi River valley alluvial aquifer
Willingness to pay for irrigation water

ASJC Scopus subject areas

Agronomy and Crop Science
Water Science and Technology
Soil Science
Earth-Surface Processes

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10.1016/j.agwat.2017.10.013

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abstract = "Conversion to surface water irrigation is one of the critical initiatives to address the decline in groundwater supply. A double-bounded dichotomous choice contingent valuation survey is used to estimate producers{\textquoteright} willingness to pay (WTP) for surface water supplied by irrigation districts in Arkansas, United States. The estimated mean WTP for irrigation water is 2.7 ¢/m3 ($33.21/acre-foot). Comparison indicates a significant share of producers are likely to have higher WTPs for surface water than the average pumping cost in the study area. Producers located in areas with less groundwater resources have higher WTPs. Producers that are more concerned with a water shortage occurring in the state in the next 10 years have higher WTPs. A somewhat unexpected result is that participation in the Conservation Reserve Program predicts lower WTPs. One possible explanation is that farmers see the transfer of land out of crop production as a more viable financial decision when groundwater supply decreases.",

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AU - Kovacs, K.

AU - Huang, Q.

AU - Henry, C.

AU - Nayga, R.

AU - Popp, J.

AU - Dixon, B.

N1 - Funding Information: This project was supported by the Arkansas Rice Research and Promotion Board, Arkansas Soybean Promotion Board, United Soybean Board, and Mid-South Soybean Board. Publisher Copyright: © 2017 Elsevier B.V.

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N2 - Conversion to surface water irrigation is one of the critical initiatives to address the decline in groundwater supply. A double-bounded dichotomous choice contingent valuation survey is used to estimate producers’ willingness to pay (WTP) for surface water supplied by irrigation districts in Arkansas, United States. The estimated mean WTP for irrigation water is 2.7 ¢/m3 ($33.21/acre-foot). Comparison indicates a significant share of producers are likely to have higher WTPs for surface water than the average pumping cost in the study area. Producers located in areas with less groundwater resources have higher WTPs. Producers that are more concerned with a water shortage occurring in the state in the next 10 years have higher WTPs. A somewhat unexpected result is that participation in the Conservation Reserve Program predicts lower WTPs. One possible explanation is that farmers see the transfer of land out of crop production as a more viable financial decision when groundwater supply decreases.

AB - Conversion to surface water irrigation is one of the critical initiatives to address the decline in groundwater supply. A double-bounded dichotomous choice contingent valuation survey is used to estimate producers’ willingness to pay (WTP) for surface water supplied by irrigation districts in Arkansas, United States. The estimated mean WTP for irrigation water is 2.7 ¢/m3 ($33.21/acre-foot). Comparison indicates a significant share of producers are likely to have higher WTPs for surface water than the average pumping cost in the study area. Producers located in areas with less groundwater resources have higher WTPs. Producers that are more concerned with a water shortage occurring in the state in the next 10 years have higher WTPs. A somewhat unexpected result is that participation in the Conservation Reserve Program predicts lower WTPs. One possible explanation is that farmers see the transfer of land out of crop production as a more viable financial decision when groundwater supply decreases.

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Willingness to pay for irrigation water when groundwater is scarce

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

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