Economic impact analysis of reduced irrigated acreage in four river basins in Colorado

Abstract

In this project, a rigorous economic accounting establishes the agricultural and economic demographics for four river basins in Colorado: the East Arkansas, East South Platte, Republican, and Rio Grande Basins. The IMPLAN software is utilized to develop an input-output model for each basin. Impact analysis is then performed on each model in order to approximate the economic effects of a reduction in irrigated acreage on each regional economy. Substantial differences between the regions exist, both in terms of impacts and multipliers, leading to the conclusion that any policy or program intending to mitigate the negative impacts of lost irrigated acreage should not be a one-size-fits-all solution, but rather would be most effective if tailored specifically to the affected region.