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An economic study of the potential for water markets in Idaho Item Info

This study investigated the economic potential for water markets that would exchange water from irrigated agricultural to hydropower production in southern Idaho. Two kinds of water market were considered. The first involved the marketing of stored water that is now owned by agricultural interests but is seldom used for irrigation. The second was an option lease program that would depend on water currently used for irrigation. A market for stored water is currently working but could be modified to increase the market value of the water. The value that could be created by selling stored water for hydropower far exceeds its current value in storage or for agricultural uses. It is conservatively estimated that the power value of this water ranges from $10 to $22 per acre-foot, while the current price being paid for power production is $2.50 per acre-foot. The option lease program also appears to be economically feasible. This program would allow agriculture to use the water in most years and require its use for hydropower only during critical flow periods. Thus, agriculture remains intact while the water continues to create value in hydropower. The program analyzed would reduce average agricultural income about $2.50 per acre while the value of hydropower created would be about ten times this amount.

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Title:
An economic study of the potential for water markets in Idaho
Authors:
Whittlesey, Norman; Hamilton, Joel; Halverson, Philip
Date Created (ISO Standard):
1986-12
Description:
This study investigated the economic potential for water markets that would exchange water from irrigated agricultural to hydropower production in southern Idaho. Two kinds of water market were considered. The first involved the marketing of stored water that is now owned by agricultural interests but is seldom used for irrigation. The second was an option lease program that would depend on water currently used for irrigation. A market for stored water is currently working but could be modified to increase the market value of the water. The value that could be created by selling stored water for hydropower far exceeds its current value in storage or for agricultural uses. It is conservatively estimated that the power value of this water ranges from $10 to $22 per acre-foot, while the current price being paid for power production is $2.50 per acre-foot. The option lease program also appears to be economically feasible. This program would allow agriculture to use the water in most years and require its use for hydropower only during critical flow periods. Thus, agriculture remains intact while the water continues to create value in hydropower. The program analyzed would reduce average agricultural income about $2.50 per acre while the value of hydropower created would be about ten times this amount.
Subjects:
hydroelectric power irrigation economic feasibility
Collection:
IWRRI
Series:
Water for Idaho
IWRRI number:
198604
Rights:
Rights to the digital resource are held by the University of Idaho. http://www.uidaho.edu/
Publisher:
University of Idaho
Contributing Institution:
University of Idaho
Type:
Text
Format:
application/pdf
Cataloger:
wbv
Date Digitized:
2012

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Source
Preferred Citation:
"An economic study of the potential for water markets in Idaho", Idaho Waters Digital Library, University of Idaho Library Digital Collections, https://www.lib.uidaho.edu/digital/iwdl/items/iwdl-198604.html
Rights
Rights:
Rights to the digital resource are held by the University of Idaho. http://www.uidaho.edu/
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