2024
Conclusions
If one assesses Arizona’s highest-profile policies to address water scarcity, water augmentation comes up short in terms of cost-effectiveness and timeliness, while irrigation restrictions on foreign firms fail to have large state-wide impacts. State programs to conserve water via improved irrigation efficiency will more likely succeed if they are combined with institutional constraints (or incentives), measure water conservation properly (which they currently do not), and determine whether hydrological conditions favor conservation beforehand (which they currently do not). Competing legislative bills for rural groundwater management have stalled. These groundwater management proposals have, however, encouraging elements from an economist’s perspective. These proposal elements include quantity limits that are transferable across users, over time, or both, and an emphasis on cost-benefit analyses.
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