Derived Demand for Irrigation Water: The California Aqueduct

Abstract

Estimation of the demand function for area resources is a major concern of many regional economic analyses. Resource demand is dependent upon several variables, including the nature of demand for the products, supply of other inputs, degree of substitutability of inputs, the time period available for adjustment, and market structure. A major problem is how to explicitly consider these important variables in a reasonable manner with limited research means. This paper reports the application of one approach, a regional linear programming allocation model for California, to the derivation of demand for irrigation water as a productive input to agriculture in one developing subregion – the West Side of the San Joaquin Valley.