| Abstract: | ABSTRACT: Exports from the Sacramento‐San Joaquin Delta are an important source of water for Central Valley and Southern California users. The purpose of this paper is to estimate and analyze the effects increased exports to south of Delta users would have on the Sacramento Valley economy and water management if water were managed and reallocated for purely economic benefits, as if there were an ideal Sacramento Valley water market. Current Delta exports of 6,190 thousand acre‐feet per year were increased incrementally to maximum export pumping plant capacities. Initial increases in Delta exports did not increase regional water scarcity, but decreased surplus Delta flows. Further export increases raised agricultural scarcity. Urban users suffer increased scarcity only for exports exceeding 10,393 taf/yr. Expanding exports raises the economic value of expanding key facilities (such as Engle bright Lake and South Folsom Canal) and the opportunity costs of environmental requirements. The study illustrates the physical and economic capacity of the Sacramento Valley to further increase exports of water to drier parts of the state, even within significant environmental flow restrictions. More generally, the results illustrate the physical capacity for greater economic benefits and flexibility in water management within environmental constraints, given institutional capability to reoperate or reallocate water resources, as implied by water markets. |
