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Mitigating negative water quality and quality externalities by joint mangement of adjacent aquifers

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  • Naomi Zeitouni
  • Ariel Dinar

Abstract

Groundwater basins are usually separated into aquifers that are hydrologically interrelated. This interrelation may take the form of water movement from one aquifer to another. When differentials in water quality exist, pumping from one of the aquifers can cause water movement that may be associated with degradation of its quality. A management policy that considers this interrelation may be preferable to an independent management of each aquifer. This paper develops a dynamic optimal control model to evaluate joint versus independent management. The optimal joint pumping management, in which two adjacent aquifers of different water qualities are interrelated, is analyzed and compared to independent aquifer pumping, and the situations where joint management is not required are identified. Policy implications are then derived and discussed. Finally, the theoretical model is applied to a case of interrelated aquifers in southern Israel. The empirical model identifies conditions (interest rate, agricultural fresh water supply rainfall recharge, price of surface water, drinking water quality standards) under which a joint policy is preferable. The empirical results confirm the theoretical ones. Copyright Kluwer Academic Publishers 1997

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  • Naomi Zeitouni & Ariel Dinar, 1997. "Mitigating negative water quality and quality externalities by joint mangement of adjacent aquifers," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 9(1), pages 1-20, January.
    • Handle: RePEc:kap:enreec:v:9:y:1997:i:1:p:1-20
    DOI: 10.1007/BF02441367
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    References listed on IDEAS

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    1. 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.
    2. Raphaël Soubeyran & Mabel Tidball & Agnes Tomini & Katrin Erdlenbruch, 2015. "Rainwater Harvesting and Groundwater Conservation: When Endogenous Heterogeneity Matters," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(1), pages 19-34, September.
    3. Stergios Athanassoglou & Glenn Sheriff & Tobias Siegfried & Woonghee Tim Huh, 2009. "Simple Mechanisms for Managing Complex Aquifers," NCEE Working Paper Series 200905, National Center for Environmental Economics, U.S. Environmental Protection Agency, revised Oct 2009.
    4. James Roumasset & Christopher Wada, 2009. "Renewable Resource Management with Alternative Sources: the Case of Multiple Aquifers and a "Backstop" Resource," Working Papers 200913, University of Hawaii at Manoa, Department of Economics.
    5. Stergios Athanassoglou & Glenn Sheriff & Tobias Siegfried & Woonghee Huh, 2012. "Optimal Mechanisms for Heterogeneous Multi-Cell Aquifers," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 52(2), pages 265-291, June.
    6. Yacov Tsur & Amos Zemel, 2017. "Steady state properties of multi-state economic models," Canadian Journal of Economics, Canadian Economics Association, vol. 50(2), pages 506-521, May.
    7. Sanchari Ghosh & Keith Willett, 2012. "Empirical Assessment of the quantity-quality tradeoff for the Ogallala: A case study from West Texas," Economics Working Paper Series 1201, Oklahoma State University, Department of Economics and Legal Studies in Business.
    8. Phoebe Koundouri, 2004. "Current Issues in the Economics of Groundwater Resource Management," Journal of Economic Surveys, Wiley Blackwell, vol. 18(5), pages 703-740, December.
    9. Roseta-Palma, Catarina, 2002. "Groundwater Management When Water Quality Is Endogenous," Journal of Environmental Economics and Management, Elsevier, vol. 44(1), pages 93-105, July.
    10. James Roumasset & Christopher Wada, 2013. "Ordering Extraction from Multiple Aquifers," Working Papers 2013-12, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    11. 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.
    12. Kimberly Burnett & James Roumasset & Sittidaj Pongkijvorasin & Christopher Wada, 2014. "Incentivizing interdependent resource management: watersheds, groundwater, and coastal ecology," Working Papers 2014-9, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    13. Anastasios Xepapadeas & Phoebe Koundouri, 2004. "Introduction to special section on Groundwater Economics and Policy," DEOS Working Papers 0406, Athens University of Economics and Business.
    14. Brozovic, Nicholas & Sunding, David L. & Zilberman, David, 2004. "Measuring The Gains From Management Of Spatially Heterogeneous Resources: The Case Of Groundwater," 2004 Annual meeting, August 1-4, Denver, CO 20240, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. James Roumasset & Christopher Wada, 2009. "Integrated Management of the South Oahu Aquifer System: A Spatial and Temporal Approach," Working Papers 200902, University of Hawaii at Manoa, Department of Economics.
    16. Qiuqiong Huang & Jinxia Wang & Scott Rozelle & Stephen Polasky & Yang Liu, 2013. "The Effects of Well Management and the Nature of the Aquifer on Groundwater Resources," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(1), pages 94-116.
    17. Roumasset, James A. & Wada, Christopher A., 2012. "Ordering the extraction of renewable resources: The case of multiple aquifers," Resource and Energy Economics, Elsevier, vol. 34(1), pages 112-128.
    18. Katrin Erdlenbruch & Raphael Soubeyran & Mabel Tidball & Agnes Tomini, 2012. "(Anti-)Coordination Problems with Scarce Water Resources," Working Papers 12-28, LAMETA, Universtiy of Montpellier, revised Sep 2012.
    19. 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.
    20. Kiran Krishnamurthy, Chandra, 2012. "Optimal Management of Groundwater under Uncertainty: A Unified Approach," CERE Working Papers 2012:19, CERE - the Center for Environmental and Resource Economics, revised 30 Jun 2014.

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