• Medientyp: E-Book
  • Titel: Energy, Groundwater, and Crop Choice
  • Beteiligte: Burlig, Fiona [Verfasser:in]; Preonas, Louis [Verfasser:in]; Woerman, Matt [Verfasser:in]
  • Körperschaft: National Bureau of Economic Research
  • Erschienen: Cambridge, Mass: National Bureau of Economic Research, 2021
  • Erschienen in: NBER working paper series ; no. w28706
  • Umfang: 1 Online-Ressource; illustrations (black and white)
  • Sprache: Englisch
  • DOI: 10.3386/w28706
  • Identifikator:
  • Schlagwörter: Grundwasser ; Wassermangel ; Landwirtschaft ; Landwirte ; Wasserpreis ; Strompreis ; Preiselastizität ; Schätzung ; Umweltpolitik ; Kalifornien ; USA ; Arbeitspapier ; Graue Literatur
  • Reproduktionsnotiz: Hardcopy version available to institutional subscribers
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    Mode of access: World Wide Web
  • Beschreibung: Groundwater is a key resource for agricultural production globally. Increasingly rapid aquifer drawdowns--as well as the policies intended to increase their sustainability--increase costs to agricultural producers, with unknown consequences. This paper provides the first large-scale empirical estimates of how farmers respond to changes in groundwater costs in one of the world's most valuable agricultural areas: California. Using rich administrative data and exogenous variation in the price of electricity, a key input into groundwater extraction, we find that farmers are very price responsive: we estimate large price elasticities of demand for electricity (-1.17) and groundwater (-1.12). We demonstrate that crop switching and fallowing are the main channel through which farmers respond to increases in groundwater costs. Using a static discrete choice model, we estimate that a counterfactual $10 per-acre-foot groundwater tax--a level consistent with California's sustainability targets--would lead farmers to reallocate 3.9 percent of cropland, with increases in fallowing and high-value fruit and nut perennials, and decreases in annual crops and low-value perennials
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