A calibrated agricultural water demand model for three regions in northern Baja California

Irrigated agriculture is the largest water user in many regions, and agricultural water use efficiency and consumption has been studied by several authors. This paper provides a framework and application of economic valuation of water for agriculture in three regions in northern Baja California, Mexico, namely Guadalupe, Maneadero and Mexicali Valleys. Positive mathematical programming (PMP), a deductive valuation technique, was the framework used for this estimation using water delivery data reported by the National Water Commission in Mexicali, production costs and cultivated area, production factors use from the Agriculture Ministry (SAGARPA); and other data from previous studies. Analysis of the results shows that marginal economic water value in Mexicali is at least 2.6 times the water price paid by farmers. Guadalupe and Maneadero with higher value agriculture, have higher marginal economic values of water than Mexicali, albeit closer to their water costs. Small shortages increase this economic value for farmers. Estimated price elasticities of irrigation water for each turn-out are inelastic for all regions and within the range of most previous studies. Policies aimed to reduce water consumption by decreasing current pumping subsidies are encouraged.

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Bibliographic Details
Main Authors: Medellín-Azuara,Josué, Howitt,Richard E., Waller-Barrera,Cynthia, Mendoza-Espinosa,Leopoldo G., Lund,Jay R., Taylor,Joseph E.
Format: Digital revista
Language:English
Published: Colegio de Postgraduados 2009
Online Access:http://www.scielo.org.mx/scielo.php?script=sci_arttext&pid=S1405-31952009000200001
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