Valuing Irrigation Water and Irrigation Water Security in the Columbia Basin Project: A Hedonic Analysis of Agricultural Land Sales

The Columbia Basin Project (CBP) is one of the largest agriculturally productive regions in the world but water insecurity and groundwater decline are threatening productivity through losses of irrigated agricultural acreage. The implicit value of irrigation water, differentiated by source, is quantified to provide insight into the value of Columbia River surface water and Odessa Subarea groundwater. Data on CBP land values, spanning August 2014 through August 2017, are used to perform a hedonic analysis. Irrigation water adds significant value to agricultural land; secure surface water rights add more value to agricultural land than insecure groundwater rights. The value added by groundwater irrigation diminishes with well depth. Estimates of CBP region irrigation water value increase our understanding of water pricing such that informed decisions can be made pertaining to efficient water allocation and use.masters, M.S., Agricultural Economics and Rural Sociology (Applied Economics) -- University of Idaho - College of Graduate Studies, 2018-0