Abstract
Emerging water markets in the western United States have slowly developed as usage patterns have changed over time. This article develops an econometric model for the Gila-San Francisco Basin. Results indicate the market price of water has risen in response to drought and market conditions. Analysis shows a statistically significant relationship between the price and quantity of water transferred, year the transaction occurred, location where the transaction occurred, new use of the water right, and whether the transaction occurred during a drought year. Using the Standard Precipitation Index, we find negotiated prices are higher during dry years.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 473-487 |
| Number of pages | 15 |
| Journal | Journal of Agricultural and Resource Economics |
| Volume | 33 |
| Issue number | 3 |
| State | Published - Dec 2008 |
Keywords
- Drought
- Econometric
- Hedonic
- Market price
- Palmer hydrological drought index
- Standard precipitation index
- Water
- Western United States
ASJC Scopus subject areas
- Animal Science and Zoology
- Agronomy and Crop Science
- Economics and Econometrics