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Optimal Conjunctive Use of Surface and Groundwater with Recharge and Return Flows: Dynamic and Spatial Patterns

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Author Info
Sittidaj Pongkijvorasin (Department of Economics, University of Hawaii at Manoa)
James Roumasset () (Department of Economics, University of Hawaii at Manoa)

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Abstract

This paper derives the efficiency price patterns for a comprehensive spatial and dynamic model of conjunctive water use incorporating conveyance losses, canal return flows, and groundwater recharge. The first-best shadow price of surface water is composed of a charge for water that flows into the farm and differential credits for water that flows to other uses. The shadow prices can be used as the basis of water pricing schemes or for exchange rates to facilitate water trading. We show that farmers near the headworks use irrigation water in the optimal program, and only farmers more distant from the headworks extract groundwater. We also illustrate the possibility of reswitching in the sequence of resource use. It may be efficient for some farms to switch from one source to another and then switch back again, e.g. groundwater to surface water to groundwater.

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File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_07-4.pdf
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File Function: First version, 2007
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Publisher Info
Paper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 200704.

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Length: 14 pages
Date of creation: 05 Mar 2007
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Handle: RePEc:hai:wpaper:200704

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Related research
Keywords: water management; conjunctive use; irrigation; return flows; conveyance loss; consumptive use; sequence of resource use;

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Find related papers by JEL classification:
Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation
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

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  1. 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. [Downloadable!] (restricted)
  2. Johnson, Ronald N & Gisser, Micha, 1981. "The Definition of a Surface Water Right and Transferability," Journal of Law & Economics, University of Chicago Press, vol. 24(2), pages 273-88, October.
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