A Retrospective Estimate of the Economic Impacts of Reduced Water Supplies to the San Joaquin Valley in 2009

By Jeffrey Michael, Richard Howitt, Josué Medellín-Azuara, and Duncan MacEwan1, Sept. 28, 2010

The effect of reduced water supplies as a result of drought and environmental pumping restrictions in 2009 on the San Joaquin Valley economy was, and continues to be, the subject of significant discussion. Economic effects were quantified in terms of agricultural production, revenues, and jobs and income. In the midst of a severe recession, it is no surprise that job loss estimates generated the most interest and debate. In the months following the 2009 growing season, data have been released that offer a clearer picture of the effects of reduced water supplies. As such, the purpose of this report is to take a retrospective look back at 2009 and summarize changes in agricultural production and employment in the San Joaquin Valley due to reduced water supplies. Model results and survey data now closely coincide and provide conclusive evidence on the final effects of reduced water supplies in 2009.

Click here to read the report at Pacific.edu