Blog: Do California farmers respond to electricity prices?
Farmers consume nearly 7% of California’s electricity. The vast majority of this electricity is used to power groundwater pumps, which farmers rely on for irrigating thirsty, high-value crops such as grapes, almonds, and pistachios. Groundwater is especially important during drought years, when farmers need to make up for surface water shortages by pulling water out of the Central Valley’s underground aquifers. In a new Energy Institute working paper, Energy Institute alums Fiona Burlig, Louis Preonas, and Matt Woerman measure the extent to which higher electricity prices cause farmers to reduce their groundwater use.
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