Influence of climate variability on the market price of water in the Gila-San Francisco basin

Jennifer L. Pullen, Bonnie G. Colby

Research output: Contribution to journalArticle

12 Scopus citations

Abstract

Emerging water markets in the western United States have slowly developed as usage patterns have changed over time. This article develops an econometric model for the Gila-San Francisco Basin. Results indicate the market price of water has risen in response to drought and market conditions. Analysis shows a statistically significant relationship between the price and quantity of water transferred, year the transaction occurred, location where the transaction occurred, new use of the water right, and whether the transaction occurred during a drought year. Using the Standard Precipitation Index, we find negotiated prices are higher during dry years.

Original languageEnglish (US)
Pages (from-to)473-487
Number of pages15
JournalJournal of Agricultural and Resource Economics
Volume33
Issue number3
StatePublished - Dec 1 2008

Keywords

  • Drought
  • Econometric
  • Hedonic
  • Market price
  • Palmer hydrological drought index
  • Standard precipitation index
  • Water
  • Western United States

ASJC Scopus subject areas

  • Animal Science and Zoology
  • Agronomy and Crop Science
  • Economics and Econometrics

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