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Integrated management of multiple aquifers with subsurface flows and inter-district water transport

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  • Pitafi, Basharat A.K.
  • Roumasset, James A.

Abstract

Many places, including the island of Oahu in Hawaii, have a number of groundwater aquifers. Consumers located in one aquifer area can be supplied from water extracted and transported from another aquifer if this results in cost savings over local extraction. Incorporating such interdistrict transport is necessary for a fully efficient allocation framework. We derive efficient water management and pricing plans for two of the four aquifer zones in the Central Oahu corridor, taking into account the possibility of inter-district water trade. Efficient management requires not only intertemporal efficiency within zones but also spatial efficiency between zones, where water is transferred from one zone to the next if, without the transfer, the intertemporal efficiency price in the receiving zone is greater than the efficiency price in the source zone plus the cost of transfer.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2006 Annual meeting, July 23-26, Long Beach, CA with number 21473.

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Date of creation: 2006
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Handle: RePEc:ags:aaea06:21473

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Keywords: Resource /Energy Economics and Policy;

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  1. Gerard Gaudet & Michel Moreaux & Stephen W. Salant, 2001. "Intertemporal Depletion of Resource Sites by Spatially Distributed Users," American Economic Review, American Economic Association, vol. 91(4), pages 1149-1159, September.
  2. Darrell Krulce & James A. Roumasset & Tom Wilson, 1997. "Optimal Management of a Renewable and Replaceable Resource: The Case of Coastal Groundwater," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1218-1228.
  3. Ujjayant Chakravorty & Darrell Krulce & James Roumasset, 2004. "Specialization and Nonrenewable Resources: Ricardo Meets Ricardo," Working Papers 200401, University of Hawaii at Manoa, Department of Economics.
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