COMPENSATING IRRIGATORS FOR RESTRICTING WATER USE: AN EXPECTED UTILITY ANALYSIS
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A daily limitation on the number of hours irrigators can pump may be imposed by utility companies seeking to use the company's generating capacity more efficiently. Three power interruption patterns are analyzed to determine electricity cost reductions which would have to be offered to keep irrigators from being made worse off by the interruptions. Irrigation system pumping capacity and the irrigator's attitudes toward risk are found to be primary determinants of the size of the required reductions.