Water Use and Transfer Scenarios in El Paso County, Texas, USA

Abstract

In this multidisciplinary study, mathematical and economic tools are used to assess the potential benefits of water transfers between the agricultural and municipal sectors in El Paso County, Texas. The scenarios are based on water consumption and revenue data over the last 20 years. The study demonstrates that pima cotton has historically consumed the greatest quantities of water while generating the least revenue to farmers (average gross revenues over 20 years equals US$300/acre-foot of water); peppers and onions have gross revenues of US$980/acre-foot and US$1,260/acre-foot, respectively. The study also indicates that equal amounts of water generate higher revenues in the municipal sector versus the agricultural sector. In 1999, 90,000 million gallons of water would have generated US$175,000,000 in the municipal sector in comparison to US$90,000,000 in the agricultural sector. Finally, an “El Paso Water Transfer Center” is proposed to create a water market in El Paso County and dictate water prices based on supply/demand interactions. The water transfer center will also insure that farmers receive monetary incentives for the water they conserve and transfer to the municipal sector. An acre-foot (AF) is the volume of water that would cover one acre to a depth of one foot, which is 43,560 cubic feet or 1233.5 cubic meters. This measurement unit is used in this paper since the literature, agreements and negotiations rely on acre-foot measurements in this region. Keeping the units in acre-feet will facilitate negotiations and applications of this study to regional users.