RT Journal Article
SR Electronic
T1 The Relationship between Priority and Value of Irrigation Water Used with Prior Appropriation Water Rights
JF Land Economics
JO Land Econ
FD University of Wisconsin Press
SP 384
OP 398
DO 10.3368/le.96.3.384
VO 96
IS 3
A1 Lee, Gi-Eu
A1 Rollins, Kimberly
A1 Singletary, Loretta
YR 2020
UL http://le.uwpress.org/content/96/3/384.abstract
AB This article examines the relationship between water right priority and value of use for rights defined by prior appropriation, and tests whether this relationship is different for rights that have been transferred from their original locations to new locations, versus those that have not. We develop an empirical model using data for agricultural irrigation water rights and show that for transferred water rights, more senior (higher-priority) rights are reallocated from lower-to higher-valued agricultural uses. For water rights that remained unchanged, we find that priority order and potential profitability, as indicated by land characteristics, are not well aligned. (JEL Q15, Q25)