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On conjunctive management of groundwater and rainwater

Author

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  • Hubert Stahn

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

  • Agnès Tomini

    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)

Abstract

We consider groundwater managed by a sole owner and where a perfect substitute, rainwater harvesting, is physically connected with the primary water source. This generates a marginal opportunity cost of using rainwater, since harvested water does not infiltrate. We first discuss the conditions that lead to a switch toward rainwater harvesting, then look at long-term rainwater harvesting systems. Due to limited storage capacity, long-term use of rainwater is only possible in conjunction with groundwater. We show that this only arises if the price of water is higher than the full marginal cost of rainwater harvesting. We also provide comparative statics related to this configuration, especially concerning the long-term water table. These results are finally illustrated by numerical examples. (C) 2017 Elsevier B.V. All rights reserved.

Suggested Citation

  • Hubert Stahn & Agnès Tomini, 2017. "On conjunctive management of groundwater and rainwater," Post-Print hal-01619915, HAL.
    • Handle: RePEc:hal:journl:hal-01619915
    DOI: 10.1016/j.reseneeco.2017.05.002
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    References listed on IDEAS

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    1. Hubert Stahn & Agnès Tomini, 2015. "Rainwater Harvesting under Endogenous Capacity of Storage : a Solution to Aquifer Preservation," Annals of Economics and Statistics, GENES, issue 119-120, pages 209-234.
    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. Masahiko Gemma & Yacov Tsur, 2007. "The Stabilization Value of Groundwater and Conjunctive Water Management under Uncertainty," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(3), pages 540-548.
    4. 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.
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    7. William D. Nordhaus, 1973. "The Allocation of Energy Resources," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 4(3), pages 529-576.
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    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.
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    13. 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.
    14. Knapp Keith C. & Olson Lars J., 1995. "The Economics of Conjunctive Groundwater Management with Stochastic Surface Supplies," Journal of Environmental Economics and Management, Elsevier, vol. 28(3), pages 340-356, May.
    15. Geoffrey Heal, 1976. "The Relationship Between Price and Extraction Cost for a Resource with a Backstop Technology," Bell Journal of Economics, The RAND Corporation, vol. 7(2), pages 371-378, Autumn.
    16. 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.
    17. Hannesson, Rognvaldur, 1983. "Optimal harvesting of ecologically interdependent fish species," Journal of Environmental Economics and Management, Elsevier, vol. 10(4), pages 329-345, December.
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    Cited by:

    1. Sara Soares & Daniela Terêncio & Luís Fernandes & João Machado & Fernando A.L. Pacheco, 2019. "The Potential of Small Dams for Conjunctive Water Management in Rural Municipalities," IJERPH, MDPI, vol. 16(7), pages 1-17, April.
    2. Stahn, Hubert & Tomini, Agnes, 2021. "Externality and common-pool resources: The case of artesian aquifers," Journal of Environmental Economics and Management, Elsevier, vol. 109(C).
    3. Pereau, Jean-Christophe & Pryet, Alexandre & Rambonilaza, Tina, 2019. "Optimality Versus Viability in Groundwater Management with Environmental Flows," Ecological Economics, Elsevier, vol. 161(C), pages 109-120.
    4. Amine Chekireb & Julio Goncalves & Hubert Stahn & Agnes Tomini, 2021. "Private exploitation of the North-Western Sahara Aquifer System," Working Papers halshs-03457972, HAL.

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    More about this item

    Keywords

    Groundwater management; Rainwater harvesting; Optimal control; Conjunctive use;
    All these keywords.

    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis

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