| Abstract: | ABSTRACT: A two-stage simulation/mathematical programming model was developed to derive irrigation water values that reflect efficient response to reduced water supplies. The failure of many previous water valuation studies to represent the dynamic dimension of irrigation was shown to result in overestimation of derived water values. Water values are also shown to be dramatically influenced by both application system characteristics, as well as the relative costs of irrigation inputs. Finally, the marginal value of irrigation water was shown to vary considerably over the irrigation season, reaching its maximum when atmospheric demand is highest and crops are most susceptible to water stress. Results presented should be of interest to policymakers investigating the viability of alternative water reallocation mechanisms. |
