Water Market Participation and Agricultural Land Values

Anita M. Chaudhry, Dean H. K. Fairbanks and Christoph Nolte

Article Figures & Data

  • Table 1

    Land Values and Transfers at the County Level

    VariableAll ParcelsOutside DistrictsInside DistrictsAll ParcelsOutside DistrictsInside DistrictsAll ParcelsOutside DistrictsInside Districts
    (1)(2)(3)(4)(5)(6)(7)(8)(9)
    Water transferred from all districts in county in t − 1 (WTc(t–1))0.0110***0.01410.0143**
    (0.00306)(0.0130)(0.00584)
    Water transferred from all districts in county in t − 2 (WTc(t–2))0.00993−0.01310.0183*
    (0.00592)(0.00787)(0.00840)
    Water transferred from all districts in county in t − 3 (WTc(t–3))0.00687−0.01550.0191**
    (0.00619)(0.0171)(0.00671)
    Depth-to-groundwater in spring in t − 1 (feet below land surface)−0.00254*−0.00333**−0.00190−0.00259*−0.00330**−0.00197−0.00258*−0.00330**−0.00193
    (0.00136)(0.00120)(0.00166)(0.00134)(0.00117)(0.00167)(0.00132)(0.00120)(0.00167)
    Coefficient of variation in spring depth-to-groundwater in previous 5 years0.006300.007830.002420.006490.007860.001980.006640.007690.00214
    (0.00530)(0.00618)(0.00264)(0.00536)(0.00610)(0.00210)(0.00539)(0.00614)(0.00275)
    County has a permit requirement for GWS-based transfer (GWSc = 1)−0.338***−0.108*−0.167−0.352***−0.185**−0.173−0.368***−0.203**−0.190
    (0.0733)(0.0588)(0.117)(0.0836)(0.0625)(0.120)(0.0796)(0.0845)(0.110)
    Constant9.542***9.408***9.224***9.559***9.512***9.222***9.576***9.534***9.232***
    (0.189)(0.142)(0.145)(0.201)(0.142)(0.153)(0.200)(0.161)(0.150)
    Parcel controlsxxxxxxxxx
    Yearxxxxxxxxx
    Countyxxxxxxxxx
    Observations10,2005,7304,47010,2005,7304,47010,2005,7304,470
    Adjusted R-squared0.3660.3830.3910.3660.3830.3920.3660.3830.392

    Note: Robust standard errors are in parentheses. Errors are clustered at the county. Parcel controls include elevation, slope, river frontage, distance to paved roads, travel time to major cities, distance to urbanized area (population > 50,000), distance to urban cluster (population > 2,500 and < 50,000), total population within 25 square miles, % building footprint between 500 m and 5,000 m, building square footage, and soil quality. GWS = groundwater substitution.

  • Table 2

    Estimated Marginal Effects of Water Transferred and Depth-to-Groundwater

    In Model with:Water Transferred (10,000 Acre-Ft.)Depth-to-Groundwater (Ft.)
    All DataOutside DistrictsInside DistrictsAll DataOutside DistrictsInside Districts
    Water transferred from all districts in county in t − 1 (WTc(t–1))0.0110*** ($197)0.0143** ($271)−0.00254* (−$45)−0.00333** (−$57)
    (0.00306)(0.00584)(0.00136)(0.00120)
    Water transferred from all districts in county in t − 2 (WTc(t–2))0.0183* ($346)−0.00259* (−$46)−0.00330** (−$56)
    (0.00840)(0.00134)(0.00117)
    Water transferred from all districts in county in t − 3 (WTc(t–3))0.0191** ($361)−0.00258* (−$46)−0.00330** (−$56)
    (0.00671)(0.00132)(0.00120)
    Water transferred from all districts in county in t − 4 (WTc(t–4))−0.00257* (−$46)−0.00331** (−$57)
    (0.00133)(0.00121)
    Water transferred from all districts in county in t − 5 (WTc(t–5))−0.00258* (−$46)−0.00332** (−$57)
    (0.00133)(0.00121)

    Note: Robust standard errors are in parentheses below the estimate; $ values calculated at means. Errors are clustered at the county.

  • Table 3

    Land Values and Transfers at the District Level

    VariableInside Districts (1)Inside Districts (2)Inside Districts (3)
    Water transferred from home district in year prior to parcel sale (WTd(t–1))−0.0265 (0.0504)
    Year t − 1 = drought year (Dt–1 = 1)0.510*** (0.127)
    (WTd(t–1) × Dt–1)0.174* (0.0869)
    Water transferred from home district in 2 years prior to parcel sale (WTd(t–2))−0.402** (0.155)
    Year t − 2 = drought year (Dt–2 = 1)0.457*** (0.106)
    (WTd(t–2) × Dt–2)0.385** (0.145)
    Water transferred from home district in 3 years prior to parcel sale (WTd(t–3))−0.143 (0.103)
    Year t − 3 = drought year (Dt–3 = 1)0.557*** (0.155)
    (WTd(t–3) × Dt–3)0.169
    Depth-to-groundwater in spring in t − 1 (feet below land surface)−0.00133 (0.00170)−0.00108 (0.00169)−0.00143 (0.00172)
    Coefficient of variation in spring depth-to-groundwater in previous 5 years−0.00142 (0.00356)−0.000978 (0.00432)−0.00126 (0.00390)
    Constant9.932*** (0.544)9.922*** (0.555)9.924*** (0.543)
    Parcel controlsxxx
    Yearxxx
    District controlsxxx
    Observations4,4594,4594,459
    Adjusted R-squared0.4100.4130.410

    Note: Robust standard errors are in parentheses. Errors are clustered at the county. Parcel controls include elevation, slope, river frontage, distance to paved roads, travel time to major cities, distance to urbanized area (population > 50,000), distance to urban cluster (population > 2,500 and < 50,000), total population within 25 square miles, % building footprint between 500 m and 5,000 m, building square footage, and soil quality.