Fixed effects estimation of the intensive and extensive margins of irrigation water demand

Nathan P. Hendricks, Jeffrey M Peterson

Research output: Contribution to journalArticle

41 Citations (Scopus)

Abstract

Irrigation water demand is estimated using field-level panel data from Kansas over 16 years. The cost of pumping varies over time due to changes in energy prices and across space due to differences in the depth to water. Exploiting this variation allows us to estimate the demand elasticity while controlling for field-farmer and year fixed effects. Fixed effects also allow us to control for land use without an instrument or assumptions about the distribution of errors. Our estimates of water demand are used to calculate the cost of reducing irrigation water use through water pricing, irrigation cessation, and intensity-reduction programs.

Original languageEnglish (US)
Pages (from-to)1-19
Number of pages19
JournalJournal of Agricultural and Resource Economics
Volume37
Issue number1
StatePublished - Apr 1 2012

Fingerprint

irrigation water
demand elasticities
water
energy costs
land use
irrigation
farmers
Fixed effects
Irrigation
Intensive margin
Water demand
Extensive margin
Costs
Demand elasticity
Land use
Water
Farmers
Water use
Panel data
Water pricing

Keywords

  • Fixed effects
  • High Plains Aquifer
  • Water demand

Cite this

Fixed effects estimation of the intensive and extensive margins of irrigation water demand. / Hendricks, Nathan P.; Peterson, Jeffrey M.

In: Journal of Agricultural and Resource Economics, Vol. 37, No. 1, 01.04.2012, p. 1-19.

Research output: Contribution to journalArticle

@article{7d3cc8affc5a44b0abdf1b938b24b79a,
title = "Fixed effects estimation of the intensive and extensive margins of irrigation water demand",
abstract = "Irrigation water demand is estimated using field-level panel data from Kansas over 16 years. The cost of pumping varies over time due to changes in energy prices and across space due to differences in the depth to water. Exploiting this variation allows us to estimate the demand elasticity while controlling for field-farmer and year fixed effects. Fixed effects also allow us to control for land use without an instrument or assumptions about the distribution of errors. Our estimates of water demand are used to calculate the cost of reducing irrigation water use through water pricing, irrigation cessation, and intensity-reduction programs.",
keywords = "Fixed effects, High Plains Aquifer, Water demand",
author = "Hendricks, {Nathan P.} and Peterson, {Jeffrey M}",
year = "2012",
month = "4",
day = "1",
language = "English (US)",
volume = "37",
pages = "1--19",
journal = "Journal of Agricultural and Resource Economics",
issn = "1068-5502",
publisher = "Colorado State University",
number = "1",

}

TY - JOUR

T1 - Fixed effects estimation of the intensive and extensive margins of irrigation water demand

AU - Hendricks, Nathan P.

AU - Peterson, Jeffrey M

PY - 2012/4/1

Y1 - 2012/4/1

N2 - Irrigation water demand is estimated using field-level panel data from Kansas over 16 years. The cost of pumping varies over time due to changes in energy prices and across space due to differences in the depth to water. Exploiting this variation allows us to estimate the demand elasticity while controlling for field-farmer and year fixed effects. Fixed effects also allow us to control for land use without an instrument or assumptions about the distribution of errors. Our estimates of water demand are used to calculate the cost of reducing irrigation water use through water pricing, irrigation cessation, and intensity-reduction programs.

AB - Irrigation water demand is estimated using field-level panel data from Kansas over 16 years. The cost of pumping varies over time due to changes in energy prices and across space due to differences in the depth to water. Exploiting this variation allows us to estimate the demand elasticity while controlling for field-farmer and year fixed effects. Fixed effects also allow us to control for land use without an instrument or assumptions about the distribution of errors. Our estimates of water demand are used to calculate the cost of reducing irrigation water use through water pricing, irrigation cessation, and intensity-reduction programs.

KW - Fixed effects

KW - High Plains Aquifer

KW - Water demand

UR - http://www.scopus.com/inward/record.url?scp=84866932093&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84866932093&partnerID=8YFLogxK

M3 - Article

AN - SCOPUS:84866932093

VL - 37

SP - 1

EP - 19

JO - Journal of Agricultural and Resource Economics

JF - Journal of Agricultural and Resource Economics

SN - 1068-5502

IS - 1

ER -