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The Value of Water Rights in Agricultural Properties in the Phoenix Active Management Area AgEcon
Yoo, James; Perrings, Charles; Kinzig, Ann; Abbott, Joshua K.; Simonit, Silvio; Connors, John P.; Maliszewski, Paul J..
This paper estimates the value of water rights in the Phoenix Active Management Area (AMA), Arizona. Within AMAs groundwater rights cannot be transferred separately from the agricultural land to which they apply. As a result there is no separate market for ground water rights. The lack of a market creates two problems: there is no direct signal of the scarcity of water and no mechanism for reallocating water from low-to-high value uses. Water can only be reallocated by changing land use. With the growth of metropolitan Phoenix the value of water committed to residential, commercial or industrial use has increased rapidly relative to the value of water committed to agriculture. This has led to the reallocation of land from agriculture to urban uses. To...
Tipo: Presentation Palavras-chave: Water rights; Hedonic price method; Urbanization; Farmland prices; Elasticity; Marginal willingness to pay; Environmental Economics and Policy; Land Economics/Use.
Ano: 2012 URL: http://purl.umn.edu/124095
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