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A Dynamic Analysis of the Impact of Water Quality Policies on Irrigation Investment and Crop Choice Decisions

Published online by Cambridge University Press:  28 April 2015

JunJie Wu ,
Harry P. Mapp  and
Daniel J. Bernardo
JunJie Wu
Affiliation:
Oklahoma State University, Stillwater, Oklahoma
Harry P. Mapp
Affiliation:
Oklahoma State University, Stillwater, Oklahoma
Daniel J. Bernardo
Affiliation:
Oklahoma State University, Stillwater, Oklahoma
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Abstract

A dynamic model is developed to analyze farmers' irrigation investment and crop choice decisions under alternative water quality protection policies. The model is applied to an empirical example in the Oklahoma High Plains. The choices of crops and irrigation systems and the resulting levels of irrigation, income, and nitrogen runoff and percolation are simulated over a ten-year period. An effluent tax on nitrogen runoff and percolation is shown to be effective in reducing nitrate pollution. The efficacy of cost sharing in adopting modern irrigation technologies and restrictions on irrigation water use depends on soil type. A tax on nitrogen use is shown to be the least effective policy.

Keywords

crop selectiondynamic optimizationirrigation investmentwater quality
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 26 , Issue 2 , December 1994 , pp. 506 - 525
Copyright
Copyright © Southern Agricultural Economics Association 1994

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