Graduate Thesis Or Dissertation
 

Opportunity costs : irrigation vs. hydropower

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  • In recent years we have seen increasing debate over the allocation of PNW water resources. In particular there are conflicts over using the river system for irrigation vs. electricity production. Denying the hydroelectric system water implies higher costs to electricity consumers as producers substitute more expensive nonhydro resources. This research looked at the impact of new irrigation on PNW electricity consumers. This was done under varying assumptions of demand response and farmer payments for pumping of irrigation water. The study also examined the difference between the current policy of allowing farmers to take all the water they need, and a policy in which withdrawals are limited in periods of low streamflow. Simulations were run to determine the amount of electricity production lost because of withdrawals. These results were then used in a series of simulations to estimate the economic impacts under the various assumptions and policies. It was found that irrigation caused losses to electricity consumers. In some cases this loss was on the order of $200/acre of irrigated land. The loss was significantly mitigated under the interruptible policy. Farmer payments for irrigation energy also reduced the loss to consumers.
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