Journal of Agricultural and Resource Economics
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An economic model of ground water salinization is developed. Starting from a full, high-quality aquifer, there is an initial extraction period, an intermediate waste disposal period, and a final drainage period. Drainage management is initially source control and reuse, but eventually culminates in evaporation basins and a system steady-state. This process occurs over long time scales but is consistent with historical observation. Efficiency is qualitatively similar to common property though quantitative magnitudes differ substantially. Regulatory pricing instruments are developed to support the efficient allocation. The system is not sustainable in that net returns generally decline through time until the steady-state.
Water management and reuse at the field level are analyzed under saline, limited drainage conditions. A function relating crop yield and deep percolation flows to applied water and salinity concentration is developed. This function fits simulated data well and is tractable for theoretical and empirical analysis of irrigation economics. With a single irrigation source, irrigation water for cotton and tomatoes at first increases and the decreases with salt concentration. Drain-water reuse is found to be an efficient strategy in events of high surface-water prices and costly solutions to drainage-related environmental problems. However, blending freshwater and drainage appears plausible only under surface water scarcity
A dynamic optimization model for agroforestry management is developed where tree biomass and soil salinity evolve over time in response to harvests and irrigation water quantity and quality. The model is applied to agroforestry production in the San Joaquin Valley of California. Optimal water applications are at first increasing in soil salinity, then decreasing, while the harvest decision is relatively robust to changes in most of the underlying economic and physical parameters. Drainwater reuse for agroforestry production also appears promising: both net reuse volumes and the implied net returns to agroforestry are substantial.
Source control is one way to address salinity and drainage problems in irrigated agriculture, and reuse of drainage flows on salt-tolerant crops or trees in agroforestry production is another. A regional model of agricultural production with drainwater reuse and disposal is developed. Deep percolation flows are controlled through choice of crop areas, irrigation systems, and applied-water quantities. Crop drainwater may by reused in agroforestry production, and residual emissions are disposed of in an evaporation pond. A significant role for both source control and reuse is found. Sensitivity to various cost and revenue parameters is also analyzed.
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