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PANEL ESTIMATION OF WATER DEMAND BASED ON AN EPISODE OF RATE REFORM AgEcon
Moreno, Georgina; Sunding, David L.; Schoengold, Karina.
Agriculture is by far the dominant user of water in the western United States and in nearly all arid regions of the planet. Despite this fact and despite a growing push to rely on price mechanisms for rationalizing water allocation, there are few econometric studies of agricultural water demand that measure its responsiveness to price. Using a unique panel data set of water use at a disaggregated level, this paper estimates the parameters of an agricultural water demand function. The approach incorporates the notion of “"jointness"” in the farm production function, which postulates that producers choose inputs, outputs and technology simultaneously. Estimation results indicate that the own-price elasticity of water use is in the range [-0.415, -0.275],...
Tipo: Conference Paper or Presentation Palavras-chave: Input demand estimation; Water resources; Conservation technology; Resource /Energy Economics and Policy; C33; Q12; Q15.
Ano: 2004 URL: http://purl.umn.edu/20342
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Intrafirm Effects on Water Conservation in Agriculture AgEcon
Moreno, Georgina.
Conservation technology adoption behavior is frequently analyzed at the smallest unit of production to capture important heterogeneity among adopters. Conclusions about firm-level decisions are drawn from these microunit outcomes. However, there may be significant intrafirm interactions that create a dependence among the microunits. This paper tests and quantifies these effects. Using a unique dataset of agricultural water use in California, this paper finds significant differences in water price elasticities of conservation technology adoption between the standard model and models that accounts for the intrafirm interactions.
Tipo: Conference Paper or Presentation Palavras-chave: Conservation; Technology adoption; Agriculture; Water resources; Irrigation intrafirm behavior; Resource /Energy Economics and Policy; Q16; Q25; Q28; Q55; L23.
Ano: 2005 URL: http://purl.umn.edu/19166
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SIMULTANEOUS ESTIMATION OF TECHNOLOGY ADOPTION AND LAND ALLOCATION AgEcon
Moreno, Georgina; Sunding, David L..
The paper considers the econometric modeling of technology adoption when crop choice is simultaneous. Bivariate probit is used to estimate a model of irrigation technology choice and land allocation using a unique field-level data set from California's Central Valley. Special attention is paid to the proper calculation of marginal effects in the bivariate probit model, which are often useful for policy purposes. Estimation results confirm that the choices of irrigation technology and land allocation are simultaneous. With regard to the influence of price incentives on agricultural water use, estimation results from the bivariate probit model indicate that the influence of water price on the adoption of precision irrigation technology is much larger than...
Tipo: Conference Paper or Presentation Palavras-chave: Land Economics/Use; Research and Development/Tech Change/Emerging Technologies.
Ano: 2003 URL: http://purl.umn.edu/22134
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IRRIGATION TECHNOLOGY INVESTMENT WHEN THE PRICE OF WATER IS STOCHASTIC AgEcon
Moreno, Georgina; Sunding, David L..
The paper considers the effect of changes in the distribution of water price on the incentives to adopt water-conserving irrigation technologies. A two-stage decision model is developed wherein agents make long-term decisions about irrigation technology investments and decide production levels based on short-term realizations of water price. Comparative statics results show that the impact of changes in the distribution of water price hinge on the responsiveness of cultivated acreage to fluctuations in the price of water. The model is tested using data on irrigation technology investment from California's San Joaquin Valley. Econometric results strongly support the conceptual model, and show that changes in the distribution of water price have...
Tipo: Conference Paper or Presentation Palavras-chave: Resource /Energy Economics and Policy.
Ano: 2000 URL: http://purl.umn.edu/21730
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