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A Water Agency faced with quantity-quality management of a groundwater resource

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  • Katrin Erdlenbruch
  • Mabel Tidball
  • Georges Zaccour

Abstract

We consider a problem of groundwater management in which a group of farmers over- exploits a groundwater stock and causes excessive pollution. A Water Agency wishes to regulate the farmer's activity, in order to reach a minimum quantity and quality level but it is subject to a budget constraint and cannot credibly commit to time-dependent optimal policies. We construct a Stackelberg game to determine a set of constant policies that brings the groundwater resource back to the desired state. We define a set of conditions for which constant policies exist and compute the amount of these instruments in an example.

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File URL: http://www.lameta.univ-montp1.fr/Documents/DR2012-09.pdf
File Function: First version, 2012
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Bibliographic Info

Paper provided by LAMETA, Universtiy of Montpellier in its series Working Papers with number 12-09.

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Length: 21 pages
Date of creation: Mar 2012
Date of revision: Mar 2012
Handle: RePEc:lam:wpaper:12-09

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