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Measuring The Gains From Management Of Spatially Heterogeneous Resources: The Case Of Groundwater

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  • Brozovic, Nicholas
  • Sunding, David L.
  • Zilberman, David

Abstract

We develop a model for the dynamic management of spatially heterogeneous resources with multiple users. We apply our model to the case of groundwater and show that – contrary to the results of existing studies – even when externalities are highly concentrated in space, significant efficiency gains are possible over competitive outcomes.

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File URL: http://purl.umn.edu/20240
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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2004 Annual meeting, August 1-4, Denver, CO with number 20240.

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Date of creation: 2004
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Handle: RePEc:ags:aaea04:20240

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Keywords: Resource /Energy Economics and Policy;

References

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  1. Umetsu, Chieko & Chakravorty, Ujjayant, 1998. "Water conveyance, return flows and technology choice," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 19(1-2), September.
  2. Brooks, R. & Controneo, J. & Murray, M. & Salant, S., 1995. "When is the Standard Analysis of Common Property Extraction Under Free Access Correct? -- A Game - Theoretic Justification for Non Game-Theoretic Analyses," Papers 95-10, Michigan - Center for Research on Economic & Social Theory.
  3. Tsur, Yacov & Graham-Tomasi, Theodore, 1991. "The buffer value of groundwater with stochastic surface water supplies," Journal of Environmental Economics and Management, Elsevier, vol. 21(3), pages 201-224, November.
  4. Provencher Bill & Burt Oscar, 1993. "The Externalities Associated with the Common Property Exploitation of Groundwater," Journal of Environmental Economics and Management, Elsevier, vol. 24(2), pages 139-158, March.
  5. Gisser, Micha, 1983. "Groundwater: Focusing on the Real Issue," Journal of Political Economy, University of Chicago Press, vol. 91(6), pages 1001-27, December.
  6. Holland, Stephen P. & Moore, Michael R., 2003. "Cadillac Desert revisited: property rights, public policy, and water-resource depletion," Journal of Environmental Economics and Management, Elsevier, vol. 46(1), pages 131-155, July.
  7. Eswaran, Mukesh & Lewis, Tracy R, 1984. "Appropriability and the Extraction of a Common Property Resource," Economica, London School of Economics and Political Science, vol. 51(204), pages 393-400, November.
  8. Khalatbari, Firauzeh, 1977. "Market Imperfections and the Optimum Rate of Depletion of Natural Resources," Economica, London School of Economics and Political Science, vol. 44(176), pages 409-14, November.
  9. Naomi Zeitouni & Ariel Dinar, 1997. "Mitigating negative water quality and quality externalities by joint mangement of adjacent aquifers," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 9(1), pages 1-20, January.
  10. Sanchirico, James N. & Wilen, James E., 1999. "Bioeconomics of Spatial Exploitation in a Patchy Environment," Journal of Environmental Economics and Management, Elsevier, vol. 37(2), pages 129-150, March.
  11. Sanchirico, James N. & Wilen, James E., 2001. "A Bioeconomic Model of Marine Reserve Creation," Journal of Environmental Economics and Management, Elsevier, vol. 42(3), pages 257-276, November.
  12. Umetsu, Chieko & Chakravorty, Ujjayant, 1998. "Water conveyance, return flows and technology choice," Agricultural Economics, Blackwell, vol. 19(1-2), pages 181-191, September.
  13. Tsur Yacov & Zemel Amos, 1995. "Uncertainty and Irreversibility in Groundwater Resource Management," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 149-161, September.
  14. Burness, H. Stuart & Brill, Thomas C., 2001. "The role for policy in common pool groundwater use," Resource and Energy Economics, Elsevier, vol. 23(1), pages 19-40, January.
  15. Chakravorty, Ujjayant & Umetsu, Chieko, 2003. "Basinwide water management: a spatial model," Journal of Environmental Economics and Management, Elsevier, vol. 45(1), pages 1-23, January.
  16. Karp, Larry, 1992. "Social Welfare in a Common Property Oligopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(2), pages 353-72, May.
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