This project involves economic evaluations of the effects of actual and proposed climate change mitigation policies. It compares and contrasts state energy and carbon emission intensity and climate mitigation policies to examine how state resource endowments affect policy development and resource use. It also examines strategies to sequester carbon or reduce carbon emissions.
This project examines the impacts of drought and climate change on climate sensitive sectors in the Southwest, focusing on agriculture, outdoor recreation, and tourism. Drafted a funded grant proposal on Economic Impacts on Drought on Agriculture, Recreational Tourism, and Rural Communities to a combination of NIDIS and the Arizona Department of Water Resources.
This project examines the potential for market mechanisms to facilitate voluntary reallocation of scarce water across different uses, specifically from agricultural to environmental purposes. It considers the scope for using reverse water auctions to obtain water for riparian restoration. This includes study of the economic theory behind reversed auctions as well as lessons from applications. It also examines the scope of the USDA Conservation Reserve Enhancement Program (CREP) to complement state and local programs for environmental water acquisitions.
Researchers at the University of California, Riverside have access to proprietary data on prices and quantities of water market trades. A hypothesis of the CLIMAS research is that USDA data on crop rental rates can be used to assess what likely water transfer prices will be. We plan to collaborate in the coming year, combining data to test this hypothesis.