Role of Electricity in Pacific Northwest Irrigated Agriculture, 1979--1987: Volume 1, A Study of Irrigation Price Elasticity of Demand, the Importance of Irrigated Agriculture to Rural Communities, and an Evaluation of Alternative Targeted Rate Discount O

摘要

Increased regional pressure for and against the wholesale rate discount has prompted BPA to evaluate the quantitative, qualitative, economic, and policy issues associated with an irrigation rate discount. BPA determined that more information was required in the following areas: Irrigation price elasticities at the subregional level (utility, group of utilities and/or production areas), importance of irrigated agriculture to local and regional economies, issues related to targeting an irrigation rate discount, and the role of BPA wholesale rates and rate discounts on Pacific Northwest sprinkler irrigation and the supporting economies. In response to this request for additional information, the analysis in the present study is conducted in four parts: Document the importance of irrigated agriculture, particularly sprinkler irrigated agriculture, to the Pacific Northwest economy and quantify the impact of the rate discount on regional agriculture and local communities; Estimate irrigation price elasticities for BPA customers at a subregional level, so that load impacts associated with the rate discount can be evaluated at a more localized level; Identify the economic, policy, and practical application issues associated with targeting a rate discount to groups of utilities or irrigators; and Review the short-term economic and policy outlook for irrigated agriculture in the Pacific Northwest and draw implications regarding the impact on producer response to electricity rates. 40 refs., 1 fig., 24 tabs.