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Alternative Approaches to Estimate the Impact of Irrigation Water Shortages on Rio Grande Valley Agriculture

John R. C. Robinson

This paper compares alternate approaches to valuing the economic impact of irrigation water shortages from Mexican noncompliance with the 1994 treaty. The two methods compared are an average value-of-water approach, and an ex post, historical crop damages approach. The availability of historical and average water shortage amounts highlights the usefulness of the former method, while crop data limitations do not allow for a comprehensive treatment of the issue using the historical damages approach.

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