Jeffrey M. Peterson

Economic Adjustments to Groundwater Depletion in the High Plains: Do Water-Saving Irrigation Systems Save Water?

A common policy prescription for conserving irrigation water is to promote more efficient or “water-saving” irrigation technologies. We develop a risk-programing model to quantify the effect of irrigation efficiency on irrigation water use in the High Plains, taking account of irrigation timing and well capacity limits. We find that optimal irrigation does not respond monotonically to changes in efficiency, although intermediate and high-efficiency systems both result in less water use than an inefficient flood system. Copyright 2005, Oxford University Press.

Understanding Human–Landscape Interactions in the “Anthropocene”

This article summarizes the primary outcomes of an interdisciplinary workshop in 2010, sponsored by the U.S. National Science Foundation, focused on developing key questions and integrative themes for advancing the science of human–landscape systems. The workshop was a response to a grand challenge identified recently by the U.S. National Research Council (2010a)—“How will Earth’s surface evolve in the “Anthropocene?”—suggesting that new theories and methodological approaches are needed to tackle increasingly complex human–landscape interactions in the new era. A new science of human–landscape systems recognizes the interdependence of hydro-geomorphological, ecological, and human processes and functions. Advances within a range of disciplines spanning the physical, biological, and social sciences are therefore needed to contribute toward interdisciplinary research that lies at the heart of the science. Four integrative research themes were identified—thresholds/tipping points, time scales and time lags, spatial scales and boundaries, and feedback loops—serving as potential focal points around which theory can be built for human–landscape systems. Implementing the integrative themes requires that the research communities: (1) establish common metrics to describe and quantify human, biological, and geomorphological systems; (2) develop new ways to integrate diverse data and methods; and (3) focus on synthesis, generalization, and meta-analyses, as individual case studies continue to accumulate. Challenges to meeting these needs center on effective communication and collaboration across diverse disciplines spanning the natural and social scientific divide. Creating venues and mechanisms for sustained focused interdisciplinary collaborations, such as synthesis centers, becomes extraordinarily important for advancing the science.

Groundwater economics: An object‐oriented foundation for integrated studies of irrigated agricultural systems

[1] An integrated foundation is presented to study the impacts of external forcings on irrigated agricultural systems. Individually, models are presented that simulate groundwater hydrogeology and econometric farm level crop choices and irrigated water use. The natural association between groundwater wells and agricultural parcels is employed to couple these models using geographic information science technology and open modeling interface protocols. This approach is used to study the collective action problem of the common pool. Three different policies (existing, regulation, and incentive based) are studied in the semiarid grasslands overlying the Ogallala Aquifer in the central United States. Results show that while regulation using the prior appropriation doctrine and incentives using a water buy-back program may each achieve the same level of water savings across the study region, each policy has a different impact on spatial patterns of groundwater declines and farm level economic activity. This represents the first time that groundwater and econometric models of irrigated agriculture have been integrated at the well-parcel level and provides methods for scientific investigation of this coupled natural-human system. Results are useful for science to inform decision making and public policy debate.

Farmers' perceived costs of wetlands: effects of wetland size, hydration, and dispersion

We survey landowners to investigate the costs associated with the presence of permanent or seasonal wetland areas in cropland. We find, as predicted by our conceptual model, that dispersion of wetland areas imposes substantial inconvenience costs for producers but that costs respond nonlinearly and irregularly to changes in the frequency of hydration. Producer attitudes toward conservation and environmental regulation have a significant impact on perceived costs, as do some demographic attributes. The analysis suggests that incentives to aggregate dispersed wetlands into larger contiguous areas could benefit landowners and at the same time provide a net increase in wetland area. Copyright 2008, Oxford University Press.

The Simple Script Wrapper for OpenMI

Integrated environmental modeling enables the development of comprehensive simulations by compositing individual models within and across disciplines. The Simple Script Wrapper (SSW), developed here, provides a foundation for model linkages and integrated studies. The Open Modeling Interface (OpenMI) enables model integration but it is challenging to incorporate scripting languages commonly used for modeling and analysis such as MATLAB, Scilab, and Python. We have developed a general-purpose software component for the OpenMI that simplifies the linking of scripted models to other components. Our solution enables scientists to easily make their scripting language code linkable to OpenMI-compliant models fostering collaborative, interdisciplinary integrated modeling. The simplicity afforded by our solution is presented in a case study set in the context of irrigated agriculture. The software is available online as supplementary material and includes an example that may be followed to employ our methods.

Comparing the Cost-Effectiveness of Water Conservation Policies in a Depleting Aquifer: A Dynamic Analysis of the Kansas High Plains

This research analyzes two groundwater conservation policies in the Kansas High Plains located within the Ogallala aquifer: 1) cost-share assistance to increase irrigation efficiency; and 2) incentive payments to convert irrigated crop production to dryland crop production. To compare the cost-effectiveness of these two policies, a dynamic model simulated a representative irrigator’s optimal technology choice, crop selection, and irrigation water use over time. The results suggest that the overall water-saving effectiveness can be improved when different policy tools are considered under different conditions. High prevailing crop prices greatly reduce irrigators’ incentive to give up irrigation and therefore cause low enrollment and ineffectiveness of the incentive payment program. In areas with low aquifer-saturated thickness, the incentive payment program is more effective, whereas in areas with relatively higher water availability, the cost-share program could be a better choice.

Transaction Costs in Payment for Environmental Service Contracts

Payment for environmental service contracts commonly require actions beyond adoption of a practice, such as undergoing specified enrollment procedures, granting consent to being monitored, and paying penalties for violations. These provisions are a bundle of attributes a landholder must accept with contract enrollment, leading to transaction costs in the contracting process. This article develops a principal-agent framework to study the links between these transaction costs and the well-known information asymmetries between the landholders and the government agency offering contracts. Using stated choice data collected from a sample of farmers, we estimate a mixed logit model to quantify the contribution of different contract attributes on contract willingness-to-accept (WTA). More stringent provisions in contracts were found to raise individual WTA by widely differing amounts across farmers, but the average effects imply that overall contract supply is sensitive to stringency. From a series of microsimulations based on the estimated model, we find that transaction costs create a significant drain on the cost-effectiveness of contracting from the agencys point of view, similar in magnitude to the inefficiency created by hidden information. Although stringent contractual terms raise program expenditures, they may be justified if they raise compliance rates enough to offset the added cost. We also simulate an implicit frontier to trace out the change in compliance needed to justify a given increase in stringency. For environmental benefits in the range of previous estimates, this analysis suggests that stringent terms would need to substantially raise compliance rates to be cost effective.

CONTROL OF NONPOINT SOURCE POLLUTION THROUGH VOLUNTARY INCENTIVE-BASED POLICIES: AN APPLICATION TO NITRATE CONTAMINATION IN NEW YORK

A voluntary program is developed to achieve environmental goals through the self-interested choices of farmers under environmental risk and asymmetric information. Farmers behave to maximize expected net returns, and environmental quality standards are formulated through chance constraints. Because the government may not know each farmers soil type, policy options must be self-selecting. The model is applied empirically to nitrate leaching and runoff from corn production in three New York regions. Asymmetric information between producers and the government would impose additional cost burdens on society, but these costs are modest in the context of other farm programs.

Multifunctionality and Optimal Environmental Policies for Agriculture in an Open Economy

This paper develops a general equilibrium framework to determine the optimal set of internalizing policies under multifunctionality and relates these policies to trade. When agriculture generates both amenity benefits and pollution, a welfare maximum can be achieved through a combination of a subsidy on agricultural land and a tax on polluting inputs, but the levels of these policies must be selected jointly. To illustrate this interaction, a set of stylized policy simulations of the aggregate U.S. agricultural sector is performed. The estimated optimal subsidy on farmland exceeds its social amenity value by approximately 50%. If opened to international trade, small economies have no incentive to distort environmental policies away from their internalizing levels, but large economies will manipulate domestic policies in order to exploit terms of trade. As a large agricultural exporter, the U.S. could manipulate its environmental policy set to increase world agricultural prices by an estimated 9% over a base case of no environmental policy.

Economic efficiency of short-term versus long-term water rights buyouts

Because of the decline of the Ogallala Aquifer, water districts, regional water managers, and state water officers are becoming increasingly interested in conservation policies. This study evaluates both short-term and long-term water rights buyout policies. This research develops dynamic production functions for the major crops in the Texas Panhandle. The production functions are incorporated into optimal temporal allocation models that project annual producer behavior, crop choices, water use, and aquifer declines over 60 years. Results suggest that long-term buyouts may be more economically efficient than short-term buyouts.