Application of a computable general equilibrium (CGE) model to evaluate surface water reallocation policies

This study uses a computable general equilibrium (CGE) model to calculate the economic impacts of reallocating surface water from irrigated agriculture to recreational use at the Stillwater National Wildlife Refuge in Churchill County, Nevada. In this study, we consider three alternative assumptions about how the proceeds from water rights sales are spent. Model results show that under all three alternative assumptions, the combined effect of water rights compensation and the increase in recreation-related expenditures does not offset the reduction in agricultural production.