The response of agricultural water use to changes in pumping costs

Abstract

Water is a scarce good without a price in riparian doctrined-governed Georgia. Differences in pumping costs are used to infer how farmers will respond to water price changes. Water demand equations have been estimated using OLS procedures. Price and quantity are pumping cost per unit and total acre-feet per acre applied, respectively. Inelastic water demand estimates obtained ranged from -0.15 to -0.27.