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An analysis of the impact of land tenure on groundwater use and attitudes concerning groundwater conservation in Colorado's Republican River Basin

Date

2017

Authors

Shepler, Ryan, author
Suter, Jordan, advisor
Goemans, Chris, committee member
Schneekloth, Joel, committee member

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Abstract

Groundwater pumping from an aquifer that exceeds the recharge rate results in decreases in future groundwater availability and well capacity. Economic research on groundwater pumping has generally assumed that groundwater is being managed myopically (Koundouri, 2004). Further research with the Ogallala aquifer has found contradictory results, with research from Pfieffer and Lin (2013) suggesting that there is dynamic decision making, while other empirical analysis has lead researchers to conclude there is no difference between myopic decision making and an otherwise optimal groundwater extraction strategy (Savage, 2011). Our research within the Republican River Basin of Colorado contributes to the literature by analyzing the impacts of land tenure on the extent to which tenants and owners make dynamically informed decisions. We find no evidence of heterogeneity in groundwater use as a result of land tenure, suggesting that groundwater decisions are being made myopically. Our research also uses data from a recently conducted survey within the region to examine the impact that tenure has in determining concern regarding groundwater availability, and support for policies within the region that would seek to conserve groundwater. Estimating multiple probit regressions, we find that tenant operators are less likely to be concerned about the long-term availability of groundwater, and that they are less likely to support groundwater management districts working to develop strategies that would seek to promote groundwater conservation. We do not find that tenure has an impact on support for specific policy mechanisms, but rather that well capacity is pivotal in driving support for these specific policies.

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