Field-level economic modeling framework evaluates water trading policies and environmental outcomes under water scarcity.
This research highlight introduces an integrated modeling framework that links a calibrated regional agricultural production model with a field-level machine learning model to evaluate water trading and allocation policies. The model improves spatial resolution in economic simulations by incorporating detailed geospatial field data, including crop types, perennial crop age, soil characteristics, and water use patterns. Using Positive Mathematical Programming and a CES production function, the framework simulates producer responses to water shortages and alternative market structures.
The combined system, called the Field Level Optional Water Allocation Model (FLOW), allows evaluation of water markets in terms of both economic efficiency and physical or spatial environmental outcomes. The framework is demonstrated in the Yakima Basin, where it is used to analyze how trade location and timing influence in-stream flows and ecosystem benefits. The model also provides a foundation for future applications in groundwater market design and broader water policy analysis.
This work was supported by the USDA National Institute of Food and Agriculture, project #1016467.
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Authors
Howitt, R., Gallagher, N., Hatchett, S., MacEwan, D., Ronspies, R., and Brady, M.
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Suggested Citation
Howitt, R., Gallagher, N., Hatchett, S., MacEwan, D., Ronspies, B., Brady, M. 2023. A Field Level Economic Model of Regional Agricultural Production. Technology for Trade Research Highlight. Washington State University, Pullman, WA.
Year Published
2024
Areas of Focus
Agricultural Technology and Water Resources & Policy
Topics
Production Systems and Water Resources
