Agricultural production's impact on water and energy demand: A choice modeling approach

Abstract

In addition to consuming large quantities of water, irrigation pumping requires a significant amount of energy. Furthermore, crop and irrigation technology decisions have a direct impact on the demand for these resources. This paper develops an empirical model of crop and irrigation technology choice and presents estimates for a number of western states. The model demonstrates that growers react to relative price changes in a manner consistent with profitmaximizing theory. Costs are more important than revenues in inducing growers to alter their production choices. An example demonstrates how the model can assess the impact of new irrigation technologies and aid in water and energy conservation planning