Determining the Price-Responsiveness of Demands for Irrigation Water Deliveries versus Consumptive Use

A water-crop simulation/mathematical programming model of irrigation water demand in northeastern Colorado is formulated to develop an original concept of derived demand for consumptive use of water. Conventional demand functions for water deliveries are also developed, and the effect of hypothetical price increases on both consumption and delivery are illustrated. Findings indicate that demand elasticity estimates are quite sensitive to model specification, and consumptive use demand tends to be significantly less price-responsive than delivery demand. Thus price incentives are likely to have only limited impacts on basin-wide water consumption and would not make much additional water available for emerging demands.


Issue Date:
2004-08
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/31107
PURL Identifier:
http://purl.umn.edu/31107
Published in:
Journal of Agricultural and Resource Economics, Volume 29, Number 2
Page range:
328-345
Total Pages:
18




 Record created 2017-04-01, last modified 2018-01-22

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