A 2020 study used a model to estimate the value of additional groundwater stock from water right retirement under the Kansas Conservation Reserve Enhancement Program (CREP). Under the baseline scenario, without water right retirement, the benefits from groundwater stocks decline in value by $3.6 million over 15 years because of groundwater depletion. In contrast, the Kansas CREP program increases groundwater stock values by $0.55 million after 15 years. Comparing this to a program cost of $45 million suggests that other social benefits from groundwater stocks must exist to justify the Kansas CREP from a benefit-cost perspective.
Publication: Manning, D., Rad, M., Suter, J., Goemans, C., Xiang, Z. and Bailey, R., 2020. Non-market valuation in integrated assessment modeling: The benefits of water right retirement. Journal of Environmental Economics and Management, 103, p.102341.doi: https://doi.org/10.1016/j.jeem.2020.102341