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Joint Management of an Interconnected Coastal Aquifer and Invasive Tree

Author

Listed:
  • Sittidaj Pongkijvorasin

    (Chulalongkorn University)

  • Kimberly Burnett

    (University of Hawaii Economic Research Organization)

  • Christopher Wada

    (University of Hawaii Economic Research Organization)

Abstract

Kiawe (Prosopis pallida), a mesquite tree considered invasive in many parts of the world including Hawai‘i, has been shown to reduce regional groundwater levels via deep taproots. In areas where aquifers are primary sources of fresh water, kiawe control has the potential to be an integral component of water management planning. We develop an analytical dynamic framework for the joint management of kiawe and groundwater, and show that optimal water management depends on expected kiawe damages, while optimal kiawe removal depends on groundwater scarcity and removal cost. Using data from the Kīholo aquifer on the west coast of Hawai‘i Island, we solve for joint management decisions with corresponding parameters related to kiawe damage and water scarcity. With 1.5% water demand growth, Kiawe should be removed if the removal cost is below $1,884/ha. Our numerical results indicate that kiawe damage is nonlinear in the rate of water demand growth. The damage costs can be attributed to three main factors. When demand growth is low, kiawe damage is driven by a higher water extraction cost. For moderate growth, the effect is compounded by anticipated future scarcity. Damage is amplified by a backstop cost effect when the growth rate is high.

Suggested Citation

  • Sittidaj Pongkijvorasin & Kimberly Burnett & Christopher Wada, 2017. "Joint Management of an Interconnected Coastal Aquifer and Invasive Tree," Working Papers 2017-8, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    • Handle: RePEc:hae:wpaper:2017-8
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    References listed on IDEAS

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    1. Thomas Kaeo Duarte & Sittidaj Pongkijvorasin & James Roumasset & Daniel Amato & Kimberly Burnett, 2010. "Optimal Management of a Hawaiian Coastal Aquifer with Near-Shore Marine Ecological Interactions," Working Papers 2010-08, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    2. James A. Roumasset & Christopher A. Wada, 2010. "Optimal and Sustainable Groundwater Extraction," Sustainability, MDPI, vol. 2(8), pages 1-10, August.
    3. 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.
    4. Evgenii Matrosov & Silvia Padula & Julien Harou, 2013. "Selecting Portfolios of Water Supply and Demand Management Strategies Under Uncertainty—Contrasting Economic Optimisation and ‘Robust Decision Making’ Approaches," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(4), pages 1123-1148, March.
    5. Burnett, Kimberly & Kaiser, Brooks & Roumasset, James, 2007. "Economic lessons from control efforts for an invasive species: Miconia calvescens in Hawaii," Journal of Forest Economics, Elsevier, vol. 13(2-3), pages 151-167, August.
    6. 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.
    7. Balisacan, Arsenio & Chakravorty, Ujjayant & Ravago, Majah-Leah (ed.), 2014. "Sustainable Economic Development," Elsevier Monographs, Elsevier, edition 1, number 9780128003473.
    8. Brozovic, Nicholas & Sunding, David L. & Zilberman, David, 2010. "On the spatial nature of the groundwater pumping externality," Resource and Energy Economics, Elsevier, vol. 32(2), pages 154-164, April.
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    10. Kimberly Burnett & James Roumasset & Christopher Wada, 2014. "Cost Optimal Joint Management of Interdependent Resources: Groundwater vs. Kiawe (Prosopis pallida)," Working Papers 2014-6, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    11. Turpie, J.K. & Marais, C. & Blignaut, J.N., 2008. "The working for water programme: Evolution of a payments for ecosystem services mechanism that addresses both poverty and ecosystem service delivery in South Africa," Ecological Economics, Elsevier, vol. 65(4), pages 788-798, May.
    12. Brett Korteling & Suraje Dessai & Zoran Kapelan, 2013. "Erratum to: Using Information-Gap Decision Theory for Water Resources Planning Under Severe Uncertainty," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(4), pages 1173-1174, March.
    13. Pongkijvorasin, Sittidaj & Roumasset, James & Duarte, Thomas Kaeo & Burnett, Kimberly, 2010. "Renewable resource management with stock externalities: Coastal aquifers and submarine groundwater discharge," Resource and Energy Economics, Elsevier, vol. 32(3), pages 277-291, August.
    14. Brett Korteling & Suraje Dessai & Zoran Kapelan, 2013. "Using Information-Gap Decision Theory for Water Resources Planning Under Severe Uncertainty," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(4), pages 1149-1172, March.
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    Cited by:

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    2. Wada, Christopher A. & Pongkijvorasin, Sittidaj & Burnett, Kimberly M., 2020. "Mountain-to-sea ecological-resource management: Forested watersheds, coastal aquifers, and groundwater dependent ecosystems," Resource and Energy Economics, Elsevier, vol. 59(C).

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    More about this item

    Keywords

    Prosopis pallida; kiawe; groundwater management; invasive species; Kīholo;
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