Water, energy, and farm production
Water, energy, and farm production Electric utility rate deregulation can have disproportionate impacts on water-intensive crops, which have historically relied upon pressurized irrigation technologies and surface water resources. Based on a case study of agricultural growers in southern California, the paper models the impacts of utility rates considered in the Western Area Power Administration`s Sierra Nevada Customer Service Region. The study was performed as part of the 2004 Power Marketing Program Draft Environmental Impact Statement. The empirical results reflect linear-programming estimates of the income transfers from growers to energy providers based on county-wide coverage of 13 junior and senior irrigation districts and short-run production possibilities of 11 irrigated crops. Transfers of income from growers to energy suppliers occur through their losses in producer surplus.
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