Economic Insight from Utah’s Water Efficiency Supply Curve

Abstract

Across the western US, growing populations and urbanization along with environmental demands and a changing climate have strained water allocation mechanisms originally designed to provide water to agriculture. This paper provides a methodology, using Utah as an example, for examining the options for new water supply via conservation, interpretable by policymakers, water agencies, and water users. Findings indicate that the largest potential water savings, at the lowest cost, are in agriculture and outdoor residential water use, where more efficient applications can maintain the acreage of crops and lawns at current levels while dramatically reducing use.

Keywords

• water efficiency
• conservation
• water rights
• water markets