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Optimal Spatial-Dynamic Management of Groundwater Conservation and Surface Water Quality with On-Farm Reservoirs

Published online by Cambridge University Press:  12 June 2017

Kent Kovacs ,
Eric Wailes ,
Grant West ,
Jennie Popp  and
Kuatbay Bektemirov
Kent Kovacs
Affiliation:
Department of Agricultural Economics and Agribusiness, University of Arkansas, Fayetteville, Arkansas
Eric Wailes
Affiliation:
Department of Agricultural Economics and Agribusiness, University of Arkansas, Fayetteville, Arkansas
Grant West
Affiliation:
Department of Agricultural Economics and Agribusiness, University of Arkansas, Fayetteville, Arkansas
Jennie Popp
Affiliation:
Department of Agricultural Economics and Agribusiness, University of Arkansas, Fayetteville, Arkansas
Kuatbay Bektemirov
Affiliation:
Public Policy Program, University of Arkansas, Fayetteville, Arkansas
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Abstract

We examine how much on-farm reservoirs can increase groundwater quantity and improve surface water quality using a spatial-dynamic model of farm profit maximization in the Arkansas Delta. Sensitivity analysis of the farm profit objective by including the value of surface water quality and the groundwater buffer value evaluates how accounting for environmental value affects the optimal crop mix, water use, and farm profits. The best policy for a critical water resource area is to have the government cost share construction of on-farm reservoirs because groundwater conservation and surface water quality goals are achieved efficiently for a modest redistribution of income.

Keywords

groundwateron-farm reservoirsspatial-dynamic optimizationwater qualityQ15Q24Q25Q28
Type
Research Article
Information
Journal of Agricultural and Applied Economics , Volume 46 , Issue 4 , November 2014 , pp. 409 - 437
Copyright
Copyright © Southern Agricultural Economics Association 2014

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References

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