Return to search

The demand for electricity in western U.S. irrigated agriculture : a dual cost function analysis

The overall objective of the research reported here is to
empirically measure the ability of farmers to mitigate the impact of
rising electricity prices by substituting relatively inexpensive
alternative inputs. A dual cost methodology is employed because it
allows theoretically consistent derivation of own price and factor
substitution elasticities, conditional upon exogenously determined
environmental, economic and technological constraints. Furthermore,
the framework allows for an assessment of the appropriateness of
producer cost minimization behavior, which has been assumed but not
explicitly tested in earlier studies. A secondary objective is to
analyze possible implications of future irrigation electricity price
changes on producer, regional economic and electric utility company
welfare. The most notable finding is that the demand for irrigation
electricity is quite price elastic. This indicates that,
historically, when the price of electricity has been relatively high,
producers have found ways to use less of this input. The derived
price elasticity of demand for irrigation electricity (-1.45) confirms results of other researchers. Gardener and Young; Whittlesey; and
Maddigan, Chern and Rizy all estimated price elasticity for irrigation
in the range from -1 to -2. Tests of the conditions necessary to
maintain the assumption of cost minimization, do not confirm that this
assumption is strictly justified in the present study. / Graduation date: 1988

Identiferoai:union.ndltd.org:ORGSU/oai:ir.library.oregonstate.edu:1957/26849
Date30 July 1987
CreatorsConnor, Jeffery Dean
ContributorsAdams, Richard M.
Source SetsOregon State University
Languageen_US
Detected LanguageEnglish
TypeThesis/Dissertation

Page generated in 0.002 seconds