PREDICTING GROUNDWATER TRADING PARTICIPATION IN THE UPPER REPUBLICAN NATURAL RESOURCE DISTRICT Report as inadecuate




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Previous research on water trading has focused on surface water trading and theoreticalapproaches to analyzing groundwater trading. Empirical analysis of groundwater trading is a newarea of study due in part to the previous lack of recorded usage, trade data and bindingconstraints on groundwater use by landowners. Groundwater trading can help move water fromlow-value to high-value areas of use for the benefit of the participating traders and generalpublic. The paper predicts participation in groundwater trading and the directions of tradesamong participants. Specifically, the paper considers both formal and informal trading ofgroundwater used for crop irrigation purposes and attempts to identify those characteristics thatpredict the probability of trade participation and whether an individual is a buyer or seller ofgroundwater rights. Results from this research indicate a strong desire to participate in trades, buthigh transactions costs have limited the number of trades that have occurred. Utilizing empiricalmodels improves the accuracy of predicting trade participation and direction, and therefore theaccuracy of models of trade effects on water supplies and stream flows used in policy anddecision making.

Subject(s): Land Economics/Use

Research and Development/Tech Change/Emerging Technologies

Research Methods/ Statistical Methods

Resource /Energy Economics and Policy

Issue Date: 2013

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/150511

Total Pages: 42

Record appears in: Agricultural and Applied Economics Association (AAEA) > 2013 Annual Meeting, August 4-6, 2013, Washington, D.C.





Author: Juchems, Elizabeth M. ; Schoengold, Karina ; Brozovic, Nicholas

Source: http://ageconsearch.umn.edu/record/150511?ln=en



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