The Economic Impacts of Agricultural Groundwater Markets

Ellen M. Bruno

from ARE Update Vol. 21, No. 6, Jul/Aug, 2018

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Abstract

Groundwater markets offer a cost-effective means of meeting management goals under the 2014 Sustainable Groundwater Management Act. Using data from the Coachella Valley groundwater basin, we quantify the economic impacts of trade in one of California’s most important agricultural regions. Facilitating groundwater trade under a mandatory basin wide “cap” on pumping will reduce disruptions to the local economy and keep land in production, relative to a scenario where trade is prohibited.

Keywords

Groundwater sustainability, SGMA, water trading, California water policy, agricultural water management

Citation

Ellen M. Bruno. "The Economic Impacts of Agricultural Groundwater Markets." ARE Update 21(6)(2018):9-11. University of California Giannini Foundation of Agricultural Economics.
https://giannini.ucop.edu/publications/are-update/issues/2018/21/6/the-economic-impacts-of-agricultural-groundwater-m/