Irrigation, risk aversion, and water right priority under water supply uncertainty

This paper explores the impacts of a water right's allocative priority—as an indicator of farmers' risk-bearing ability—on land irrigation under water supply uncertainty. We develop and use an economic model to simulate farmers' land irrigation decision and associated economic returns in eastern Ida...

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Main Authors: Li, Man, Xu, Wenchao, Rosegrant, Mark W.
Format: Journal Article
Language:Inglés
Published: American Geophysical Union 2017
Subjects:
Online Access:https://hdl.handle.net/10568/147920
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author Li, Man
Xu, Wenchao
Rosegrant, Mark W.
author_browse Li, Man
Rosegrant, Mark W.
Xu, Wenchao
author_facet Li, Man
Xu, Wenchao
Rosegrant, Mark W.
author_sort Li, Man
collection Repository of Agricultural Research Outputs (CGSpace)
description This paper explores the impacts of a water right's allocative priority—as an indicator of farmers' risk-bearing ability—on land irrigation under water supply uncertainty. We develop and use an economic model to simulate farmers' land irrigation decision and associated economic returns in eastern Idaho. Results indicate that the optimal acreage of land irrigated increases with water right priority when hydroclimate risk exhibits a negatively skewed or right-truncated distribution. Simulation results suggest that prior appropriation enables senior water rights holders to allocate a higher proportion of their land to irrigation, 6 times as much as junior rights holders do, creating a gap in the annual expected net revenue reaching up to $141.4 acre−1 or $55,800 per farm between the two groups.
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spelling CGSpace1479202025-12-08T10:11:39Z Irrigation, risk aversion, and water right priority under water supply uncertainty Li, Man Xu, Wenchao Rosegrant, Mark W. water management water availability water rights irrigation agricultural economics climate change This paper explores the impacts of a water right's allocative priority—as an indicator of farmers' risk-bearing ability—on land irrigation under water supply uncertainty. We develop and use an economic model to simulate farmers' land irrigation decision and associated economic returns in eastern Idaho. Results indicate that the optimal acreage of land irrigated increases with water right priority when hydroclimate risk exhibits a negatively skewed or right-truncated distribution. Simulation results suggest that prior appropriation enables senior water rights holders to allocate a higher proportion of their land to irrigation, 6 times as much as junior rights holders do, creating a gap in the annual expected net revenue reaching up to $141.4 acre−1 or $55,800 per farm between the two groups. 2017 2024-06-21T09:23:30Z 2024-06-21T09:23:30Z Journal Article https://hdl.handle.net/10568/147920 en Open Access American Geophysical Union Li, Man; Xu, Wenchao; and Rosegrant, Mark W. Irrigation, risk aversion, and water right priority under water supply uncertainty. 2017. Water Resources Research 53(9): 7885-7903. https://doi.org/10.1002/2016WR019779
spellingShingle water management
water availability
water rights
irrigation
agricultural economics
climate change
Li, Man
Xu, Wenchao
Rosegrant, Mark W.
Irrigation, risk aversion, and water right priority under water supply uncertainty
title Irrigation, risk aversion, and water right priority under water supply uncertainty
title_full Irrigation, risk aversion, and water right priority under water supply uncertainty
title_fullStr Irrigation, risk aversion, and water right priority under water supply uncertainty
title_full_unstemmed Irrigation, risk aversion, and water right priority under water supply uncertainty
title_short Irrigation, risk aversion, and water right priority under water supply uncertainty
title_sort irrigation risk aversion and water right priority under water supply uncertainty
topic water management
water availability
water rights
irrigation
agricultural economics
climate change
url https://hdl.handle.net/10568/147920
work_keys_str_mv AT liman irrigationriskaversionandwaterrightpriorityunderwatersupplyuncertainty
AT xuwenchao irrigationriskaversionandwaterrightpriorityunderwatersupplyuncertainty
AT rosegrantmarkw irrigationriskaversionandwaterrightpriorityunderwatersupplyuncertainty