Research in Ground‐Water Economics in the High Plains Area of Colorado

Abstract

AbstractThe ground‐water aquifer underlying the northeastern corner of Colorado presently is estimated at 80,000,000 acre feet — enough to last several decades at present rates of use. The rate of use has, however, been increasing substantially in recent years and the possibility of depleting this resource is very real. While depletion of stock resources is a common theme in conservation and natural resources literature, only a few empirical studies are available to show the economic consequences of alternative rates of use. As a result, ground‐water policy has often lagged behind the needs of developing areas.The Economics Department at Colorado State University, under the auspices of the Office of Water Resources Research is currently engaged in an empirical study of ground‐water development problems in Colorado's High Plains area. Research is just beginning, but the following themes will be examined: The economics of common property resources and the different management problems associated with them. Problems faced by individual farm operators as they make the switch from dry‐land to irrigated farming. Problems of externalities among farm firms will be approached. Problems likely to be faced by inhabitants of communities in the developing area. The integration of the agricultural with the non‐agricultural sectors will be stressed. Policy recommendations appropriate to areas of rapid ground‐water development. While the activities at Colorado State University are confined to a relatively small geographic area, it is assumed that applications will be made broader in scope and will prove useful in other parts of the nation.