Author

Todd Guilfoos (Department of Environmental and Natural Resource Economics, University of Rhode Island)

Abstract

This work measures the historical evolution of the value of water power during the Industrial Revolution in the United States. I use the variation in county level agricultural land prices and the natural endowment of water power to identify the value of water power. This value is decomposed into direct values (power as a prime mover) and indirect values (attracting infrastructure) from 1850 to 1920; prior to 1900 approximately 85%–90% of the total value is derived from the direct effect of water power. Significant devaluation of water-power endowments occur after 1900, with a significant decline in value by 1920.

Keywords: Water power; Industrial revolution; Market access

Published on Explorations in Economic History, Volume 95,2025.