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          Volume 42, Number 04, November 2010 >

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Title: Effectiveness of Two Water Conservation Policies: An Integrated Modeling Approach
Authors: Das, Biswa R.
Willis, David B.
Johnson, Jeffrey W.
Keywords: integrated regional water policy model
Texas High Plains
water conservation policy
hydrology model
economic optimization model
Ogallala Aquifer
tax policy
quota policy
JEL Codes: Q30
Issue Date: 2010-11
Abstract: Agriculture in the Texas High Plains depends entirely on the Ogallala Aquifer. Texas enacted water conservation legislation to address declining reserves in the aquifer. We developed an integrated regional water policy model that links a hydrology model with an economic optimization model to estimate policy impacts with respect to economic cost and water conservation. Testing the effectiveness of two policies, a groundwater extraction tax and extraction quotas, we observe that neither significantly inhibits groundwater use. Although both policies conserve similar amounts of groundwater, the regional cost of the tax policy to agriculture is more than the quota policy.
Institution/Association: Journal of Agricultural and Applied Economics>Volume 42, Number 04, November 2010
Total Pages: 16
From Page: 695
To Page: 710
Collections:Volume 42, Number 04, November 2010

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