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Influence of Climate Variability on the Market Price of Water in the Gila-San Francisco Basin | CLIMAS

Influence of Climate Variability on the Market Price of Water in the Gila-San Francisco Basin

TitleInfluence of Climate Variability on the Market Price of Water in the Gila-San Francisco Basin
Publication TypeArticles
Year of Publication2008
AuthorsColby, B, Pullen, J
JournalJournal of Agricultural and Resource Economics
Volume33
Issue3
Pagination473-487
Date PublishedDec-08
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.

URLhttp://ageconsearch.umn.edu/bitstream/46568/2/Pullen.pdf