A Dynamic Analysis of the Impact of Water Quality Policies on Irrigation Investment and Crop Choice Decisions

Author:

Wu JunJie,Mapp Harry P.,Bernardo Daniel J.

Abstract

AbstractA dynamic model is developed to analyze farmers' irrigation investment and crop choice decisions under alternative water quality protection policies. The model is applied to an empirical example in the Oklahoma High Plains. The choices of crops and irrigation systems and the resulting levels of irrigation, income, and nitrogen runoff and percolation are simulated over a ten-year period. An effluent tax on nitrogen runoff and percolation is shown to be effective in reducing nitrate pollution. The efficacy of cost sharing in adopting modern irrigation technologies and restrictions on irrigation water use depends on soil type. A tax on nitrogen use is shown to be the least effective policy.

Publisher

Cambridge University Press (CUP)

Subject

Economics and Econometrics,Agricultural and Biological Sciences (miscellaneous)

Reference28 articles.

1. Land Quality, Irrigation Development, and Cropping Patterns in the Northern High Plains

2. The Effects of Pricing Policies on Water Conservation and Drainage

3. An Economic Analysis of Irrigation Investment Alternatives in the Central High Plains.;Earls;J. of Amer. Soci, of Farm Managers and Rural Appraisers.,1992

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