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A Method For Estimating the Value of Water Among Sectors of A Regional Economy

Published online by Cambridge University Press:  28 April 2015

Mark S. Henry  and
Ernie Bowen
Mark S. Henry
Affiliation:
Department of Agricultural Economics and Rural Sociology, Clemson University
Ernie Bowen
Affiliation:
Department of Agricultural Economics and Rural Sociology, Clemson University
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Extract

Recent trends in the southeastern states toward increased use of irrigation in agriculture may be attributed to risk aversion management by farmers in response to recent drought periods. Despite ample annual average rainfall in the Southeast during the growing season, the vicissitudes of rainfall patterns provide sufficient reason to consider irrigation for field crops as well as for vegetables and fruit (Ganguly). Increased use of irrigation additionally results in new demands for water in rural areas.

It is also well documented that nonmetropolitan areas are experiencing substantial rates of positive net immigration (Wardell and Gilchrist). In the Southeast, there is a trend for new manufacturing plants to locate in rural areas where wages, taxes, and union activity are at low levels. As growth occurs in these nonmetropolitan regions, industrial, residential, and commercial activities require additional supplies of water.

Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 13 , Issue 2 , December 1981 , pp. 125 - 132
Copyright
Copyright © Southern Agricultural Economics Association 1981

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