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来源类型Working Paper
规范类型报告
DOI10.3386/w28706
来源IDWorking Paper 28706
Energy, Groundwater, and Crop Choice
Fiona Burlig; Louis Preonas; Matt Woerman
发表日期2021-04-26
出版年2021
语种英语
摘要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.
主题Environmental and Resource Economics ; Agriculture ; Renewable Resources ; Energy
URLhttps://www.nber.org/papers/w28706
来源智库National Bureau of Economic Research (United States)
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资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/586379
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Fiona Burlig,Louis Preonas,Matt Woerman. Energy, Groundwater, and Crop Choice. 2021.
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