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Ordering Renewable Resources: Groundwater, Recycling, and Desalination

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  • Roumasset James

    (University of Hawaii at Manoa)

  • Wada Christopher A

    (University of Hawaii at Manoa)

Abstract

Optimal recycling of minerals can be thought of as an integral part of the theory of the mine. In this paper, we consider the role that wastewater recycling plays in the optimal extraction of groundwater, a renewable resource. We develop a two-sector dynamic optimization model to solve for the optimal trajectories of groundwater extraction and water recycling. For the case of spatially increasing recycling costs, recycled water serves as a supplemental resource in transition to the steady state. For constant unit recycling cost, recycled wastewater is eventually used as a sector-specific backstop for agricultural users, while desalination supplements household groundwater in the steady state. In both cases, recycling water increases welfare by shifting demand away from the aquifer, thus delaying implementation of costly desalination. The model provides guidance on when and how much to develop resource alternatives.

Suggested Citation

  • Roumasset James & Wada Christopher A, 2011. "Ordering Renewable Resources: Groundwater, Recycling, and Desalination," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-29, May.
    • Handle: RePEc:bpj:bejeap:v:11:y:2011:i:1:n:28
    DOI: 10.2202/1935-1682.2810
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    Cited by:

    1. Amine Chekireb & Julio Goncalves & Hubert Stahn & Agnes Tomini, 2021. "Private exploitation of the North-Western Sahara Aquifer System," AMSE Working Papers 2144, Aix-Marseille School of Economics, France.
    2. James Roumasset & Christopher Wada, 2012. "The Economics of Groundwater," Working Papers 2012-4, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    3. James Roumasset & Christopher Wada, 2013. "Integrating Demand-Management with Development of Supply-Side Substitutes," Working Papers 2013-13, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    4. Stahn, Hubert & Tomini, Agnès, 2017. "On conjunctive management of groundwater and rainwater," Resource and Energy Economics, Elsevier, vol. 49(C), pages 186-200.
    5. Karl Jandoc & Ruben Juarez & James Roumasset, 2014. "Towards an Economics of Irrigation Networks," Working Papers 201416, University of Hawaii at Manoa, Department of Economics.
    6. Ariana M. Pietrasanta & Mostafa F. Shaaban & Pio A. Aguirre & Sergio F. Mussati & Mohamed A. Hamouda, 2023. "Simulation and Optimization of Renewable Energy-Powered Desalination: A Bibliometric Analysis and Highlights of Recent Research," Sustainability, MDPI, vol. 15(12), pages 1-28, June.
    7. James Roumasset & Christopher Wada, 2014. "Integrated Groundwater Resource Management," Working Papers 201414, University of Hawaii at Manoa, Department of Economics.
    8. Luckmann, Jonas & Grethe, Harald & McDonald, Scott, 2015. "When Water Saving Limits Recycling: Modeling Cascading Water Use in a Computable General Equilibrium Framework," Conference papers 332622, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. James Roumasset & Christopher Wada, 2014. "Groundwater Economics without Equations," Working Papers 2014-8, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.

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    More about this item

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling

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