Water conservation policy alternatives for the southern portion of the Ogallala aquifer (Texas)

Underground water conservation districts in Texas were granted the authority to impose water use fees or restrict pumpage of water under Texas Senate Bill 2 passed in 2002. Restricting the amount of water used for irrigation will extend the life of the aquifer and make more water available of future use. The objective of this study was to analyze the impact of alternative water conservation policies on the regional economy of the Southern High Plains of Texas.; A dynamic nonlinear programming model was used to measure the impact of alternative water conservation policies on reducing the rate of aquifer decline and the change in agricultural income over a fifty year planning horizon for nineteen counties in the Southern High Plains of Texas. The baseline model estimated aquifer decline and the net present value of agricultural income under current water use policies. Three alternative water conservation scenarios were evaluated including (1) a water fee, (2) a restriction of the quantity of water pumped annually, and (3) a restriction of the cumulative decrease in the aquifer's saturated thickness over the planning horizon. The changes in revenue for the different scenarios were used in an input-output model to determine economic impact for the region.; The results of this study suggest that imposing limits on water use, on either an annual use basis or on a cumulative use basis, results in greater water conservation over the fifty year planning horizon than does imposing water use fees at the maximum level allowed. A comparison of net present values of net income suggests a policy that imposes water use fees gives the smallest change from baseline, followed by restricting the decrease in the level of the aquifer, and finally by restricting annual pumpage. The economic impact analysis showed that the water use fee had the smallest impact on the economy. The annual water use restriction imposed the greatest initial impact on economic output but recovered to near baseline by the end of the period. The restriction in the decline in saturated thickness resulted in the greatest economic impact of the three alternative measures.