RETRACTED: Economic value of agricultural water use for Arizona

Abstract

This paper aims to estimate the economic value of agricultural water use in Arizona based on an improved economic value estimation model (EVIW model). In this research, EVIW method is optimized for the economic value estimation of agricultural water use from the perspective of crops. Crop Price per unit for crop production, crop yield per acre and irrigation area are used to calculate gross profit. Crop variable costs per acre (labor costs, chemical costs, machinery fuel and repair costs, etc.) and corresponding irrigation areas are used to calculate variable costs. Gross revenues and variable costs are used to calculate the net returns generated by irrigation water. Arizona agricultural water use for crops are estimated based on meteorological data and Cropland Data Layers. Finally, economic values of agricultural water are determined by the net returns of irrigated crops and agricultural water use. The results show that the economic values of agricultural water are positive and negative with great variations. The models applied in the research bring forward practical conclusions for further water allocations, transfer, and policies.