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ARS Home » Plains Area » Bushland, Texas » Conservation and Production Research Laboratory » Soil and Water Management Research » Research » Publications at this Location » Publication #242921
Title: Economic efficiency of short-term versus long-term water rights buyouts

Author
item WHEELER, ERIN - Texas Tech University
item GOLDEN, BILL - Kansas State University
item JOHNSON, JEFFREY - Texas Tech University
item PETERSON, JEFFREY - Kansas State University

Submitted to: Journal of Agricultural and Applied Economics
Publication Type: Peer Reviewed Journal
Publication Acceptance Date: 5/1/2007
Publication Date: 8/1/2008
Citation: Wheeler, E., Golden, B., Johnson, J., Peterson, J. 2008. Economic efficiency of short-term versus long-term water rights buyouts. Journal of Agricultural and Applied Economics. 40(2):493-501.

Interpretive Summary:

Technical Abstract: Because of the decline of the Ogallala Aquifer, water districts, regional water managers, and state water officers are becoming increasingly interested in conservation policies. This study evaluates both short-term and long-term water rights buyout policies. This research develops dynamic production functions for the major crops in the Texas Panhandle. The production functions are incorporated into optimal temporal allocation models that project annual producer behavior, crop choices, water use, and aquifer declines over 60 years. Results suggest that long-term buyouts may be more economically efficient than short-term buyouts.