Document Type
Article
Publication Date
2-2023
Keywords
demand estimation; natural resource wealth; weak sustainability
Abstract
We estimate the benefits of the saturated thickness (water-bearing porous material) of the alluvial aquifer in Arkansas through an application of the hedonic price model to the sale of agricultural land. There is evidence from the first-stage analysis of diminishing returns from increasing saturated thickness. Using a survey of farmer operators’ preferences and socioeconomic characteristics, we recover the underlying demand function for saturated thickness in a second-stage analysis. Shifts in the demand function reveal that produced/social capital can be a substitute or a complement to saturated thickness, and human capital is a substitute for saturated thickness.
Citation
Kovacs, K., & Rider, S. (2023). Estimating the Demand for Groundwater: A Second-stage Hedonic Land Price Analysis for the Lower Mississippi River Alluvial Plain, Arkansas. Journal Of Agricultural And Applied Economics, 55, 194-216. https://doi.org/10.1017/aae.2023.15
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.
