Hostname: page-component-78c5997874-94fs2 Total loading time: 0 Render date: 2024-10-31T13:14:52.322Z Has data issue: false hasContentIssue false

Value of Irrigation Water in the Middle Atlantic States: An Econometric Approach

Published online by Cambridge University Press:  05 September 2016

Bruce Madariaga
Affiliation:
Department of Agricultural and Resource Economics, University of Maryland
Kenneth E. McConnell
Affiliation:
Department of Agricultural and Resource Economics, University of Maryland

Abstract

Estimation of the economic value of irrigation water is complicated by a lack of data on the price or marginal cost of water. Through econometric estimation of an aggregate total value product function, this paper obtains marginal irrigation water value estimates for the Middle Atlantic region. Additionally, the impact of temperature and soil conditions on aggregate production within the region is estimated. Ridge regression and covariance analysis are employed to deal with problems of multicollinearity and simultaneous equation bias, respectively. Estimates indicate a substantial and growing return to irrigation within the region.

Type
Articles
Copyright
Copyright © Southern Agricultural Economics Association 1984

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Anderson, D. O., Cook, N. R., and Badger, D. D. Estimation of Irrigation Water Values in Western Oklahoma, Oklahoma Agr. Exp. Sta., Processed Series P-528, February, 1966.Google Scholar
Beattie, B. R., Castle, E. N., Brown, W. G., and Griffin, W.. Economic Consequences of Interbasin Water Transfer, Oregon Agr. Exp. Sta., Tech. Bull. No. 116, June, 1971.Google Scholar
Brown, W. G., and Beattie, B. R.Improving Estimates of Economic Parameters by Use of Ridge Regression with Production Function Applications.Amer. J. Agr. Econ., 57(1975):2132.Google Scholar
Frank, M. D.The Economic Value of Irrigation Water in the Western United States: An Application of Ridge Regression.” M.S. Thesis, Texas A & M University, May, 1979.Google Scholar
Hanson, J., and Pagana, J.. “Growth and Prospects for Irrigation in the Eastern United States.” EPA Grant No. R 8060236010, Rural Lands Research, Environmental Research Laboratory, Athens, Georgia, 1980.Google Scholar
Harmon, L. M., and Whittlesey, N. K. Marginal Values of Irrigation Water: A Linear Programming Analysis of Farm Adjustments to Changes in Water Supply, Colorado Agr. Exp. Sta., Tech. Bull. No. 70, June, 1961.Google Scholar
Hoch, I.Simultaneous Equation Bias in the Context of the Cobb-Douglas Production Function.Econometrica, 26(1958):566578.CrossRefGoogle Scholar
Hoch, I.Estimation of Production Function Parameters Combining Time-Series and Cross Section Data.Econometrica, 30(1962):3453.CrossRefGoogle Scholar
Hoch, I.Book Review: The Economic Demand for Irrigated Acreage: New Methodology and Some Preliminary Projection, 1954-1980, by Vernon Ruttan.Nat. Res. J., 7(1967):466471.Google Scholar
Hoerl, A. E. and Kennard, R. W.Ridge Regression: Biased Estimation for Nonorthogonal Problems.Technometrics, February, 1970a, pp. 5767.Google Scholar
Hoerl, A. E. and Kennard, R. W.Ridge Regression: Applications to Nonorthogonal Problems.Technometrics, February, 1970b, pp. 6982.Google Scholar
Huete, S. M., Lessley, B. V., and Stevens, G. A. Economics of Alternative Irrigation Systems on Row Crop Production on the Eastern Shore of Maryland, Maryland Agr. Exp. Sta. Rep. MP977, December, 1982.Google Scholar
Lynne, Gary D.Issues and Problems in Agricultural Water Demand Estimation From Secondary Data Sources.So. J. Agr. Econ., 2(1978):101106.Google Scholar
Ruttan, V. W. The Economic Demand for Irrigated Acreage—New Methodology and Some Preliminary Projections, 1954-1980, Baltimore: The John Hopkins Press, 1965.Google Scholar
Shumway, C. R.Derived Demand for Irrigation Water: The California Aqueduct.So. J. Agr. Econ., 4(1973):195200.Google Scholar
U.S. Department of Commerce, Bureau of Census. United States Census of Agriculture, State and County Statistics, Vol. I: Delaware, Maryland, New Jersey, North Carolina, and Virginia, Washington, D.C. (1969, 1974, and 1978).Google Scholar
U.S. Department of Commerce, 1978 Census of Agriculture. 1979 Farm and Ranch Irrigation Survey, Vol. 5, Special Reports, Part 8, Table 4.Google Scholar
U.S. Department of Commerce, National Oceanic and Atmospheric Administration, Environmental Data and Information Service. Climatological Data—Annual Summary: Delaware, Maryland, New Jersey, North Carolina, and Virginia, National Climatic Center, Asheville, North Carolina (1969, 1974, and 1978).Google Scholar
Young, R. A., and Gray, S. L. Economic Value of Water: Concepts and Empirical Estimates, National Water Commission Report No. NWC-PBS-72-047, March, 1972.Google Scholar