An economic model for water allocation in North Eastern Spain
AbstractThe aim of this paper is to construct and apply a model for the allocation of water between two competing users, namely irrigation and hydropower. The model is applied in a case study of a specific water system located in North Eastern Spain. Starting with an irrigation-hydropower joint income function, we develop a constrained maximisation process that takes into account the environmental, institutional and actual priority of the water rights. The resulting solution can be useful as a guide for potential bargains between users. Furthermore, we evaluate the results for different supply (precipitation) and water allotments (increase in irrigated land). The results show that there are sufficient incentives so as to reach agreements that lead to improvements in a Pareto sense without side payments.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 36729.
Date of creation: Sep 2001
Date of revision:
Environmental and Natural Resource Economics; Water Economics; Bargaining; Cooperative Games;
Find related papers by JEL classification:
- Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
- Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply (the Commons)
- Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
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- Dinar, Ariel & Wolf, Aaron, 1994. "International Markets for Water and the Potential for Regional Cooperation: Economic and Political Perspectives in the Western Middle East," Economic Development and Cultural Change, University of Chicago Press, vol. 43(1), pages 43-66, October.
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