THE ECONOMICS OF DEFICIT IRRIGATION
Article first published online: 16 NOV 2012
Copyright ©2012 Wiley Periodicals, Inc.
Natural Resource Modeling
Volume 26, Issue 3, pages 331–364, August 2013
How to Cite
WANG, C. and NAIR, S. (2013), THE ECONOMICS OF DEFICIT IRRIGATION. Natural Resource Modeling, 26: 331–364. doi: 10.1111/nrm.12004
- Issue published online: 25 JUL 2013
- Article first published online: 16 NOV 2012
- Received by the editors on 15th September, 2011. Accepted 16th August, 2012.
- Deficit irrigation;
- groundwater resources;
- water economics;
- common pool resource dilemma
Abstract Natural resource economists have paid great attention to irrigation water allocations among competing users. However, the intrauser allocation problem is greatly understudied. As irrigation becomes increasingly capital-intensive, inefficient within-field allocation and ill-designed water-conservation policy can bring considerable value loss to the water resource. We offer a comprehensive treatment of the economic problem of the intrauser allocation of a limited amount of irrigation water. A framework is provided for determining optimal irrigation intensity and extensity in both static and dynamic settings. An empirical application in West Texas cotton production demonstrates model implementation and offers new insights into the water-saving potential of government-sponsored cost-share programs for promoting high-efficiency irrigation adoption.