This article analyses the endogenous choice of farmers to be organic or conventional in a groundwater evolutionary model when a tax on fertiliser on conventional farmers is implemented by a regulatory agency. The analysis of the model shows that the coexistence of both type of farmers only occurs when the decrease in productivity due to organic production is relatively low and the price premium for organic products is relatively high. However, even if conversion is welfare improving, our results show that this conversion may be done at the expense of the water resource with a lower water table. An application to the Western la Mancha aquifer (Spain) illustrates the main results.

This study examines the grazing management plans (GMPs) adoption and prioritization of environmental and economic objectives among U.S. cow-calf and stocker operations, utilizing 2020–2021 survey data and logistic regression analysis. Findings reveal regional adoption differences, with higher rates in the Midwest. Operations with succession plans, larger grazing lands, and stocker activities are more likely to adopt GMPs. Operations with more privately owned land and smaller herd sizes prefer environmental goals, while those with less grazing land prioritize economic outcomes due to resource concerns. The study provides insights for policies promoting GMP adoption and sustainability in the U.S. beef sector.

We estimate the benefits of the saturated thickness (water-bearing porous material) of the alluvial aquifer in Arkansas through an application of the hedonic price model to the sale of agricultural land. There is evidence from the first-stage analysis of diminishing returns from increasing saturated thickness. Using a survey of farmer operators’ preferences and socioeconomic characteristics, we recover the underlying demand function for saturated thickness in a second-stage analysis. Shifts in the demand function reveal that produced/social capital can be a substitute or a complement to saturated thickness, and human capital is a substitute for saturated thickness.

This paper estimates the effect of environmental remediation on housing prices in the Milwaukee Estuary Area of Concern (AOC) using a hedonic analysis of individual arms-length sales before and after a major remediation action between 2011 and 2015. Our design leverages this before-after comparison as well as the proximity of homes to remediation and the AOC boundary. Measuring the effect of AOCs in the housing market has always been a difficult task, given that water in AOCs can provide a mix of amenities and disamenities. Indeed, we find little evidence of a negative proximity effect when applying hedonic analysis to cross-section data. However, when we apply the analysis to a repeated cross section in a quasi-experimental framework, we find statistically significant evidence that living near the affected part of the AOC became more desirable after cleanup.

Studies suggest the inter-rater reliability of judges at wine competitions is higher than what would be expected by random chance, but lower than what is observed when experts in other fields make judgments specific to their expertise. To further contextualize the (un-) reliability of wine judging while also extending the study of fine water, we examine the inter-rater reliability of judges at an annual international competition for bottled waters. We find that the inter-rater reliability of water judging is generally better than chance and, at best, about the same as the inter-rater reliability of wine judging at some wine competitions. These results suggest that perceptible differences between fine waters exist but are less pronounced than those between fine wines and, also, that aesthetic standards with respect to fine waters exist but are currently less established than those for fine wines.

We explore the economic merits of on-farm water storage with tailwater recovery systems to reduce aquifer depletion in a region with expanding irrigated acreage and substantial off-season precipitation. Gains are substantial on a broad scale and long planning horizon, including more than $4 billion in producer surplus, 5 million acre-feet of conserved groundwater, and land capitalization of $24 per acre. Sensitivity analyses provide insights with respect to the impact of discount rates, rainfed returns, return flows, and aquifer recharge rates. Results can inform stakeholders about the optimal allocation of funds directed at agricultural practice adoption and agricultural water investments.

This study determines which factors are associated with the use of rotational grazing and the frequency with which Tennessee producers rotate cattle during the summer months. Survey data were used to estimate an ordered response model with sample selection. Most respondents used rotational grazing, and the most frequent rotational schedule was rotating cattle one to two times per month. Factors including labor, capital, knowledge, and water availability influenced the use of rotational grazing and the frequency of rotating cattle. The insights from this study can inform the development of incentives to promote more intensive use of rotational grazing.

The water purification functions of forests represent one of the most frequently invoked examples of nonmarket ecosystem services that are economically valuable. This study quantifies the monetary value of forests' water purification services in the form of the ensuing cost savings of municipal drinking water treatment, using a rich panel dataset from China's Sichuan province. Moreover, this study has undertaken a novel spatial piecewise approach to investigate the spatial patterns of such cost savings delivered by forests at different distances from the water intake point. The estimation results find that forests within a 2 km radius upstream from the water intake point have the most sizeable and statistically significant cost saving effect. For forests within a 3 km radius, this effect becomes somewhat smaller but remains statistically significant. Beyond a 4 km radius, this effect becomes notably smaller and statistically equal to zero. Our analysis facilitates the optimal spatial targeting of forest conservation.

We present evidence that international trade may exacerbate the initial unequal distribution of hydric resources. This result is driven by the fact that countries exporting agricultural goods are relatively abundant (with respect to capital) in the combined availability of water and arable land but, in absolute terms, scarce in capital and not richer in water in comparison to more developed ones. Due to both the scarcity of capital and the lower relative price of natural resources with respect to capital, the total value of production in these developing countries is modest, implying that international trade can lead to a less even distribution of the water content of consumption. Policies sustaining water prices and, more generally, those of natural resources (or lower capital costs) may contribute to offsetting this effect and allow for trade to play a positive role in reducing the uneven distribution of water endowments.

In the context of climate change and increasing occurrences of extreme events, it is essential to understand farmers' responses to weather shocks and adaptations. This paper uses a panel dataset of 311 selected Indian districts ranging from 1966 to 2009 to investigate how application of chemical fertilizers varies in response to rainfall shocks. Two rainfall shock measures are constructed based on deviation in rainfall from the normal, a categorical measure of rainfall shock; and another, a continuous index of negative rainfall deviation. Based on a panel fixed effect regression, the study finds no apparent reduction in the level of fertilizer use in negative rainfall shock years. However, with a one-year lagged rainfall shock, a reduction in fertilizer application rate is observed for the continuous drought index. Further, exposure to higher intensity droughts in the previous year leads to an increase in the amount of fertilizer application in the current year.

Due to COVID-19, many households faced hardships in the spring of 2020 – unemployment, an uncertain economic future, forced separation, and more. At the same time, the number of people who participated in outdoor recreation in many areas increased, as it was one of the few activities still permitted. How these experiences affect the public’s willingness to pay (WTP) for environmental public goods is unknown. During the early months of the pandemic, we conducted a stated preference survey to value statewide water quality improvements in Delaware. While a majority of participants report experiencing hardship of some sort (economic, emotional, etc.), mean household WTP declined by only 7 % by May 2020.

We utilize a Generalized Exact Affine Stone Index system to evaluate the structure of residential water demand that recognizes demand interrelationship between residential and bottled water in the United States, allowing for precommitted consumption. Further, we address expenditure and price endogeneity by accounting for the supply side of the price determination mechanism. A significant substitutability relationship between residential and bottled water is found, while substantial precommitments are established in both residential and bottled water consumption. Residential demand becomes price-elastic once the precommitted level is reached. Finally, ignoring substitutability, precommitments, or endogeneity distorts the demand structure, resulting in erroneous policy implications.

Climate change is predicted to increase the frequency of extreme weather events, increasing the vulnerability of smallholder farmers dependent on rain-fed agriculture. We evaluate the extent to which farmers in Malawi suffer crop production losses due to extreme weather, and whether sustainable land management (SLM) practices help shield crop production losses from extreme events. We use a three period panel dataset where widespread floods and droughts occurred in separate periods, offering a unique opportunity to evaluate impacts using data collected immediately following these events. Results show that crop production outcomes were severely hit by both floods and droughts, with average losses ranging between 32–48 per cent. Legume intercropping provided protection against both floods and droughts, while green belts provided protection against floods. However, we find limited evidence that SLM adoption decisions are driven by exposure to weather shocks; rather, farmers with more productive assets are more likely to adopt.

Using cover crops can be beneficial not only for soil health but also for the environment. However, relatively few farmers have adopted cover crops, so understanding the barriers to adoption is necessary. We used a probit model with data on 1,712 soybean producers from the 2012 USDA Agricultural Resource Management Survey to identify factors affecting adoption of cover crops. We found that more precipitation was positively correlated with adoption, as was more hired labor. Adoption was also positively correlated with crop diversification and no-till adoption, which may relate to equipment availability.

This study examines the relationship between groundwater irrigation and off-farm employment with a set of household level data collected in North China. The results provide evidence that off-farm employment reduces both time spent on irrigation in terms of total hours of irrigation and the amount of groundwater pumped. However, these effects have not resulted in losses of crop production. In fact, water productivity measured as output value produced per m3 of groundwater pumped is higher among households with off-farm employment. These seemingly contradictory findings are explained by the increased use of water-saving technologies such as furrow irrigation, underground pipes and/or lined canals. These technologies reduce seepage losses during the conveyance of groundwater as well as during irrigation of the fields. As a result, less groundwater needs to be pumped to achieve the same level of groundwater irrigation application rate in the field.

This study explores factors affecting adoption of two stormwater management practices, rain gardens and rain barrels. Mail survey data from Columbia, Missouri indicate adoption rates of 3.12 percent (rain gardens) and 7.47 percent (rain barrels). This unique dataset enables us to distinguish among nonadopters using knowledge levels, and to investigate the effect of practice-specific barriers. Clustered multinomial logistic regressions reveal serious gardeners are more likely to adopt both practices. Specific barriers differ by practice and type of nonadopter. Adding practice-specific barriers increased pseudo R2 values from 0.12 to 0.22 for rain gardens and from 0.13 to 0.26 for rain barrels.

We investigate allocation of funds by citizens across management options addressing impairments to coastal water quality. We study systematic variation in citizen allocation of funds to adaptive versus preventative strategies including the impact of referundum choices and test whether allocations will be impacted by cuing in the design of the referendum. Two key policy insights from our results: citizens who vote no on a water quality referendum have different preferences over allocating funds and providing cues to voters influenced allocation behavior. These results can assist decision makers in thinking about language used to communicate coastal water quality issues, particularly budget referenda.

This research aimed to illicit nonfarming absentee landowners’ and producers’ preferences for the benefits and characteristics derived from conservation practices during adoption decisions using maximum difference scaling, also called the best-worst method. Both groups are found to rank and value the attributes and reasons for adoption of conservation practices differently at the 95% significance level. This difference between the two groups reinforced the importance of land tenure in decision making. This indicated the need for new extension educational efforts, research efforts, and economic incentives to reduce negative externalities that could be ameliorated from adoption of soil and water conservation practices.

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.

Erosion of agricultural croplands is a significant contributor of sedimentation to reservoirs. Here, physiographic and economic models for a large agricultural watershed (2377 square miles with 27 subwatersheds) are integrated for the reduction of sedimentation of one Midwestern reservoir. Sediment reduction and the cost-effectiveness of three agricultural best management practices (no-till, filter strip, and permanent vegetation) implementation were considered under three modeling scenarios: random assignment; the globally most cost-effective approach; and a cost-effective targeting approach. This study demonstrates how physiographic and economic data can be harnessed to yield readily comprehendible cost-effective targeting maps. Cost-effective targeting may be preferable to watershed managers for its “user-friendliness” without too great a sacrifice of the globally most cost-efficient solution.