Evidence supporting cap and trade as a groundwater policy option for reducing irrigation consumptive use.

Book Title: NA
Year Published: 2009
Month Published: NA
Author: Thompson, C. L. ; Supalla, R. J. ; Martin, D. L. ; McMullen, B. P.
Book Group Author: NA

In the American West water is becoming an increasingly scarce resource. Obligations to bordering states, endangered species protection, and long-term resource sustainability objectives have created a need for most western states to reduce the consumption of irrigation water. In Nebraska specifically, the Nebraska Department of Natural Resources (NDNR) and local Natural Resource Districts (NRDs) are meeting a large part of this need by using a regulatory approach, commonly called groundwater allocation. The cost of allocation, which occurs in the form of reduced economic returns to irrigation, could be greatly reduced by using an integrated cap and trade approach. Much like environmental cap and trade programs which are used to reduce the cost of limiting environmental pollution, the trading of capped groundwater allocations can reduce the cost of limiting water use. In an analysis of a typical case in the Nebraska Republican Basin, we found that the impact of a water market to trade groundwater allocations depended on the size of the allocation and on the characteristics of the land and irrigation systems involved in the trade. Potential economic benefits from trade ranged from US$0 to US$120 per 1,000 cubic meters traded, from US$25 to US$250 per 1,000 cubic meters of reduction in consumptive use, and from US$16 to US$50 per hectare of irrigated land in the region. The highest benefits occurred at relatively high allocations, which capped withdrawals at 65-75% of the expected unrestricted pumping level. These gains from trade would be split between buyers and sellers based on the negotiated selling price.

Pages: 1508 - 1518
URL: http://0-search.ebscohost.com.catalog.library.colostate.edu/login.aspx?direct=true&AuthType=cookie,ip,url,cpid&custid=s4640792&db=lah&AN=20103027769&site=ehost-live
Volume: 45
Number: 6
Journal: Journal of the American Water Resources Association
Journal ISO: NA
Organization: NA
Publisher: NA
ISSN: 1093-474X

analysis, characteristics, consumption, economics,endangered species, environmental degradation, groundwater, irrigatedsoils, irrigation, irrigation systems, irrigation water, naturalresources, optimization, pollution, soil types (cultural),sustainability, trade, water allocation, water policy, water resources,water use, Nebraska, USA, Western States of USA, Northern Plains Statesof USA, West North Central States of USA, North Central States of USA,USA, North America, America, Developed Countries, OECD Countries, GreatPlains States of USA, environmental pollution, threatened species,United States of America, watering, Techniques and Methodology (ZZ900),Natural Resource Economics (EE115) (New March 2000), BiologicalResources (General) (PP700), Pollution and Degradation (PP600), WaterResources (PP200), Soil Morphology, Formation and Classification(JJ400), Soil Water Management (Irrigation and Drainage) (JJ800)(Revised June 2002) [formerly Soil Water Management], Agricultur

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