RURAL-TO-URBAN WATER TRANSFERS: MEASURING DIRECT FOREGONE BENEFITS OF IRRIGATION WATER UNDER UNCERTAIN WATER SUPPLIES

Irrigation water from a southeastern Colorado county has been sold to distant municipalities. The county's junior water right delivered limited and uncertain water supplies which were used on relatively poor soils. The ability of water markets to allocate water to the highest-valued use was addressed by assessing the direct foregone benefits of the transfer using deterministic and discrete stochastic sequential (DSSP) programming models. Crop mix predicted by the DSSP followed observed regional patterns. The DSSP was thus used to derive regional water demand from which foregone value was estimated. Direct regional foregone agricultural benefits were relatively low-due to uncertain water supplies and unproductive soils-indicating the market selected a low-valued supply for transfer.Resource /Energy Economics and Policy,

An Economic Analysis of Predation Control and Predatory Sheep Losses in Southwestern Utah

To provide accurate data concerning sheep losses resulting from predation, a verification study of sheep predation was initiated in March 1972 in the Cedar City area of Utah. In cooperation with the Cedar City Wool Growers Association and Southern Utah State College Experimental Farm, ten sheep ranches were chosen as sample operations, forming the data base for the initial phase of the study (1972-1974). Cooperating ranchers were asked to promptly report all sheep carcasses or injured sheep, so that an examination could immediately be made to ascertain the cause of death or injury. Daily horseback searches were also conducted on the spring and summer ranges. Every located sheep carcass was examined to determine cause of death. If a predator was responsible, the kill was photographed and location, date, species of predator and age class of carcass was recorded. Coyotes were the principal predator inflicting 89 to 100 percent of the kills. Lambs were the principal age class of predator kills. The number of sheep carcasses found and verified as predator kills and natural losses was substantially less than the total number lost. Therefore, a proportion was used to estimate the total predation rate. The average predation rate was 5.9 percent expressed as a percent of lamb crop. In the final year of the study (1975) three herds were chosen and research efforts were intensified and the validity of the statistical inference was confirmed. An estimated total predation loss of 3028 lambs was incurred by herds 1-10 in 1972 to 1974. In 1975, 158 lambs were destroyed by predators in herds 1, 3 and 5. These losses were valued at $89,347. Assuming the sample predation rate is representative of predation losses throughout Utah, the state-wide lamb loss to predators was calculated to be 127,521 lambs, representing a direct income loss to the Utah sheep industry of$3,622,061. The indirect or multiplier losses represented an additional $10,072,911 loss to the state economy. Two models were developed. The first, a cost model, illustrated the nature of the costs of coyote predation, their effects upon the rancher and several approaches to profit maximization with and without coyote predation. The second model approached predation economics from a biological standpoint to identify research needs for future inquiries into predation economics. The relationships between coyote population dynamics, coyote control and predatory sheep losses were discussed, leading to the formulation of an economic production function model. The model provides a conceptual framework to determine the effectiveness and optimum rate of predator control efforts

The ABC's of Apples, Bees, and Connections Hydrologic

Resource /Energy Economics and Policy, Q25,

THE VALUE OF SPORT FISHING IN THE SNAKE RIVER BASIN OF CENTRAL IDAHO

The value of sportfishing in the Snake River Basin in Central Idaho was measured using a two-stage/disequilibrium travel model. The two-stage/disequilibrium model does not require monetization of recreationists? travel time as required of traditional equilibrium labor market travel cost models. The model was estimated using Poisson regression, appropriate for count data when over-dispersion is absent, and adjusted for endogenous stratification (self selection bias) . Contrary to expectations that anglers living close to the sites with low values would be over represented in the sample, the endogenous stratification adjustment caused estimated consumers surplus to decline from $42 per person per trip before adjustment for endogenous stratification to$35 after adjustment. The average number of sportfishing trips per year was 6.72, resulting in an average annual willingness-to-pay of $236 per year per angler.Resource /Energy Economics and Policy,

Measuring the Location Value of a Recreation Site

The demand for sport fishing on the Snake River reservoirs was estimated using the travel cost method. A short-run demand model was specified with location value for anglers who have the option to access a follow-on site if fishing conditions are poor. Willingness to pay for a fishing trip to the site was $18.52 for anglers who did not have a follow-on site and$43.48 for anglers who did. A location value of $24.96 accrued only to anglers with a follow-on site. Total annual site value was understated by as much as 40$0.78 million) if location value for anglers with a follow-on site was excluded from the benefit estimate.contingent behavior, count data, endogenous stratification, follow-on site, location value, multiple destination, option value, short-run demand, travel cost method, Resource /Energy Economics and Policy,

The Demand for Wine Tourism in Canyon County, Idaho

Many commercial wineries produce a dual product: commercial wine and wine tourism. Since Idaho wineries charge no entry price, wine tourism demand can only be ascertained with a shadow price for winery visitation. Demand for wine tourism visits for Canyon County in southern Idaho was estimated using the travel cost method. Trip demand was inelastic (-0.4 to -0.6) with respect to own price. The average value of Canyon County wine tourism ranged from $6 to$12 per person per trip, depending upon the assumed opportunity cost of travel time. Elasticities of tastes and preferences, closely related goods, and income were estimated with a view to understanding the market for Idaho's emerging wine tourism industry.Travel cost model, Wine tourism, Wine marketing, Resource /Energy Economics and Policy,

VALUING IDAHO WINERIES WITH A TRAVEL COST MODEL

Many commercial wineries produce a dual product; commercial wine and wine tourism. Growth of wine tourism throughout the US has been phenomenal. In contrast to the price of wine, which is reflected in the market, the demand for wine tourism can be only ascertained with a shadow price for winery visitation. The demand for wine tourism visits for Canyon County in southern Idaho was estimated using the Travel Cost Method. The value of wine tourism in Canyon County was estimated to be $5.40 per person per trip and trip demand was highly inelastic at 0.5. Elasticities of other trip demand function variables were estimated and analyzed, with a view to informing the marketing of Idaho's emerging wine tourism industry.Community/Rural/Urban Development, Crop Production/Industries,

The Contribution of the Grape and Wine Industry to Idaho’s Economy: Agribusiness and Tourism Impacts

The impact of Idaho’s wine and grape industry was assessed as an agribusiness and as a tourist industry. Idaho’s grape and wine industry is in its infancy, with wine sales of $15 million from 15 wineries and growers cultivating about 1,000 acres, primarily in southwestern Idaho’s Canyon County. Synthesized output multipliers for wine tourism were virtually identical to the agribusiness output multipliers (1.86 and 2.10 for Canyon County and the state of Idaho, respectively). The wine and grape industry’s agribusiness impact is$15 million in sales and 120 jobs in Idaho, and $23 million and 140 jobs for Canyon County. In contrast, tourism expenditures stimulate other businesses in addition to the agribusiness linkages of grape and wine production. Thus, only about three-fourths of the current wine production would be required to be sold to out-of-region tourists to equal the impact of the wine and grape industry as an agribusiness industry.Idaho, impact analysis, input/output models, tourism, wine, wine agribusiness, Agribusiness, Research and Development/Tech Change/Emerging Technologies,

EMERGING AGRICULTURAL WATER CONSERVATION PRICE INCENTIVES

Recent Bureau of Reclamation policies encourage or require irrigation districts to adopt price conservation incentives. Using unpublished survey results and new district-level information, we examine the rate structures and incentives of district water pricing. Our findings reveal that the majority of districts use fixed charges independent of the quantity of water delivered and that most conservation rate structures recently implemented are designed so that the first tier quantity allocation satisfies most crop water needs. Although other district management objectives may be satisfied, price incentives are diminished or nonexistent. The question of whether conservation is being achieved is tautological and depends on how each district defines conservation.Resource /Energy Economics and Policy,

IRRIGATION DISTRICT ADOPTION OF WATER CONSERVING RATE STRUCTURES

A binary choice model was used to identify the attributes that influence irrigation district adoption of conservation rate structures. Using principles of rate design and irrigation district administration as a framework, measures of irrigation district rate structure objectives and physical and economic conditions were developed. The factors investigated characterize the constraints under which districts operate, value and cost of water, quantity of water delivered and revenue risk for districts. Rate structure adoption was predicted with over 75% accuracy. Both significant and non-significant factors are key to understanding rate choice. Districts were more likely to adopt conservation rate pricing when the cost of water to farmers was greater, higher value crops were grown and in areas with warmer and longer growing seasons. These conditions may be interpreted as reflecting the presence of greater opportunity costs in allocating water between low and higher valued uses. Conservation rate pricing was less likely to be adopted by districts where the proportion of alfalfa to total acreage was higher and with higher per acre deliveries of water. Somewhat surprisingly, annual variation in water deliveries (which should increase the risk of revenue shortfalls) and size of the district (larger districts being more sophisticated) have little bearing on the type of rate structure adopted.Environmental Economics and Policy, Land Economics/Use, Resource /Energy Economics and Policy,