TY - JOUR
T1 - Willingness to pay for irrigation water when groundwater is scarce
AU - Knapp, T.
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.
PY - 2018/1/1
Y1 - 2018/1/1
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.
KW - Groundwater shortage
KW - Mississippi River valley alluvial aquifer
KW - Willingness to pay for irrigation water
UR - http://www.scopus.com/inward/record.url?scp=85032854032&partnerID=8YFLogxK
U2 - 10.1016/j.agwat.2017.10.013
DO - 10.1016/j.agwat.2017.10.013
M3 - Article
AN - SCOPUS:85032854032
SN - 0378-3774
VL - 195
SP - 133
EP - 141
JO - Agricultural Water Management
JF - Agricultural Water Management
ER -