A spatial hedonic analysis of the value of groundwater to agriculture

Abstract

Groundwater provides many valuable services to society, especially as a source of irrigation water. However, over-extraction and degradation threaten the ability of many groundwater systems to continue to provide such valuable services to society. Information on the benefits of maintaining these resources, or the damages associated with further degradation, can be helpful in managing these resources. Using a rich data set of parcel-level characteristics and a spatial hedonic valuation model, this research highlights the role of groundwater quality and depth in influencing the estimated value of groundwater to irrigated agriculture. The general conclusions of this research, which can be applied to other regions globally, are water is a differentiated product and that there are several pathways in which it can influence agriculture, including changes in levels, variability and quality.