|
| Bar-Shira, Ziv; Finkelshtain, Israel; Simhon, Avi. |
| In this paper, we adapt Burtless and Hausman's (1978) methodology in order to estimate farmer's demand for irrigation water under increasing block-rate tariffs and empirically assess its effect on aggregate demand and inter-farm allocation efficiency. This methodology overcomes the technical challenges raised by increasing block rate pricing and accounts for both observed and unobserved technological heterogeneity among farmers. Employing a micro panel data documenting irrigation levels and prices in 185 Israeli agricultural communities in the period 1992-1997 we estimate water demand elasticity at -0.3 in the short run (the effect of a price change on demand within a year of implementation) and -0.46 in the long run. We also find that, in... |
| Tipo: Working or Discussion Paper |
Palavras-chave: Block-Rate Pricing; Irrigation; C13; Q15; Q28; Resource /Energy Economics and Policy. |
| Ano: 2005 |
URL: http://purl.umn.edu/14982 |
