Title: The Inefficiency of Water Allocation in the San Joaquin Valley and Possible Policy Solutions

Author: Jami Tautfest

Abstract: Many farms in California’s San Joaquin Valley currently receive Bureau of Reclamation subsidized water from the Central Valley Project and the State Water Project. These subsidized rates discourage the adoption of irrigation technologies that conserve water. Conservation is very important in California because groundwater is currently being used in an unsustainable manner. Farm run-off in this valley is also a major source of non-point source pollution that injects hazardous salts and trace elements into streams that negatively effect fish and wildlife. This run-off can be greatly reduced by using less water. In an effort to address these problems, this paper explores if reducing bureau subsidies, utilizing pigouvian taxes, allowing water transfers, and subsidizing conservation technologies would have an impact on conservation.

Key References:

Carey, Janis M. & Zilberman, David. (2002). A Model of Investment Under Uncertainty, Modern Irrigaiton Technology and Emerging Markets in Water. American Agriculture Economics, 84(1). 171-183.

Cashwell, Margriet. & Lichtenberg, Erik. The Effects of Pricing Policies on Water Conservation and Drainage. American Journal of Agricultural Economics, 72(4). 883-891.

Ending California’s Water Crisis: A Market Solution to the Politics of Water. (1999). http://www.pacificresearch.org/pub/sab/enviro/watermkts/main.html

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Date: May 2002
Student: jtautfes@willamette.edu
ENVR 327: Water Resources
Instructor: Dr. Karen Arabas
http://www.willamette.edu/~karabas/courses/envr327w