From Communal Irrigation to Irrigation Districts: an Economic Assessment of New Mexico’s Transition
Abstract: Praised for their ability to overcome transaction costs and reduce externalities of water distribution, irrigation districts formed rapidly throughout the United States in the 20th century. To better understand and quantify the gains, I compare and contrast the smaller acequia organization with the large centralized irrigation districts in New Mexico. Utilizing the Social-Ecological System framework, I highlight the distinction between irrigation districts and acequias. Next, I conduct a hedonic difference-in-difference analysis comparing counties that formed irrigation districts to those that continue irrigating under decentralized acequias from 1910 to 1978. I find the central districts increase agriculture land values by nearly 12 percent.
