The Effect of Water Use Regulations on Net Returns and Marginal User Costs
Norton, Nancy A.
Clark, Richard T.
Schneekloth, Joel P.
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A non-linear constrained net-revenue model was used to estimate the effects of groundwater regulations that allow for accumulation and marketing of unused annual irrigation allocations. The research shows that such incentives for voluntary reductions in current water use are effective, but depend on the existence or creation of water rights. The degree of effectiveness also depends on crop prices, production costs, soil type, and evapotransporation requirements.