Effects of climate change are likely to be detected in nearly all sectors and regions of the economy, with both winners and losers. One of the consequences of climatic changes could be altered regional water supplies. This paper presents an investigation of regional agricultural implications of changes in water availability. Specifically, using a profit maximization approach, the economic consequences of altered water availability in the Great Basin of Nevada are analysed in terms of the effects on net returns of agricultural producers. Under the scenarios analysed in this paper, it is found that with adequate water systems, increase in streamflow and consequent increase in water availability could significantly benefit agricultural producers of this region. Net returns to irrigators could increase by 8 to 13 percent, not taking into account the possibility of changes in crop yields and prices. It is also shown that the benefits from increased water availability are sensitive to likely crop yield and price changes. The potential for adverse effects of climatic changes on water supply is also considered by analyzing the effects of decreased water availability. Under decreased water availability scenarios, farmer net returns decrease substantially.

agriculture, climatic change, crop yield, economic impact,irrigation, prices, profits, returns, stream flow, water availability,water supply, Nevada, USA, Mountain States of USA, Western States ofUSA, USA, North America, America, Developed Countries, OECD Countries,United States of America, water supplies, watering, Natural ResourceEconomics (EE115) (New March 2000), Plant Production (FF100), Soil WaterManagement (Irrigation and Drainage) (JJ800) (Revised June 2002)[formerly Soil Water Management], Water Resources (PP200), Meteorologyand Climate (PP500)

• Journal Article

• Ag Water Resource Economics
• Water Supply, Sources and Agricultural Use