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Ground Water Quantity and Quality Management: Agricultural Production and Aquifer Salinization over Long Time Scales

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  • Knapp, Keith C.
  • Baerenklau, Kenneth A.

Abstract

An economic model of ground water salinization is developed. Starting from a full, high-quality aquifer, there is an initial extraction period, an intermediate waste disposal period, and a final drainage period. Drainage management is initially source control and reuse, but eventually culminates in evaporation basins and a system steady-state. This process occurs over long time scales but is consistent with historical observation. Efficiency is qualitatively similar to common property though quantitative magnitudes differ substantially. Regulatory pricing instruments are developed to support the efficient allocation. The system is not sustainable in that net returns generally decline through time until the steady-state.

Suggested Citation

  • Knapp, Keith C. & Baerenklau, Kenneth A., 2006. "Ground Water Quantity and Quality Management: Agricultural Production and Aquifer Salinization over Long Time Scales," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(03), December.
  • Handle: RePEc:ags:jlaare:8633
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    File URL: http://purl.umn.edu/8633
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    References listed on IDEAS

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    1. Dinar, Ariel, 1994. "Impact of energy cost and water resource availability on agriculture and ground water quality in California," Resource and Energy Economics, Elsevier, vol. 16(1), pages 47-66, March.
    2. Burness, H. Stuart & Brill, Thomas C., 2001. "The role for policy in common pool groundwater use," Resource and Energy Economics, Elsevier, vol. 23(1), pages 19-40, January.
    3. Farhed Shah & David Zilberman & Erik Lichtenberg, 1995. "Optimal combination of pollution prevention and abatement policies: The case of agricultural drainage," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 5(1), pages 29-49, January.
    4. 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.
    5. 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.
    6. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, March.
    7. Jon Conrad & Lars Olson, 1992. "The economics of a stock pollutant: Aldicarb on Long Island," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(3), pages 245-258, May.
    8. Kan, Iddo & Schwabe, Kurt A. & Knapp, Keith C., 2002. "Microeconomics Of Irrigation With Saline Water," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 27(01), July.
    9. Kim, C. S. & Moore, Michael R. & Hanchar, John J. & Nieswiadomy, Michael, 1989. "A dynamic model of adaptation to resource depletion: theory and an application to groundwater mining," Journal of Environmental Economics and Management, Elsevier, vol. 17(1), pages 66-82, July.
    10. Wichelns, Dennis, 1999. "An economic model of waterlogging and salinization in arid regions," Ecological Economics, Elsevier, vol. 30(3), pages 475-491, September.
    11. Knapp, Keith C. & Dinar, Ariel, 1986. "A Dynamic Analysis Of Optimal Water Use Under Saline Conditions," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 11(01), July.
    12. Fleming, Ronald A. & Adams, Richard M. & Ervin, David E., 1998. "The Role Of Soil Test Information In Reducing Groundwater Pollution," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 23(01), July.
    13. Characklis, Gregory W. & Griffin, Ronald C. & Bedient, Philip B., 2005. "Measuring the Long-Term Regional Benefits of Salinity Reduction," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 30(01), April.
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    Cited by:

    1. repec:eee:foreco:v:29:y:2017:i:pa:p:47-55 is not listed on IDEAS
    2. James Roumasset & Christopher Wada, 2012. "The Economics of Groundwater," Working Papers 2012-4, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    3. Jeff Connor & Kurt Schwabe & Darran King & David Kaczan & Mac Kirby, 2009. "Impacts of climate change on lower Murray irrigation ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(3), pages 437-456, July.
    4. Knapp, Keith C. & Franklin, Bradley, 2012. "Sustainability Economics of Groundwater Usage and Management," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124959, Agricultural and Applied Economics Association.
    5. repec:hae:wpaper:2012-5 is not listed on IDEAS
    6. Esteban, Encarna & Albiac, José, 2011. "Groundwater and ecosystems damages: Questioning the Gisser-Sánchez effect," Ecological Economics, Elsevier, vol. 70(11), pages 2062-2069, September.
    7. Mukherjee, Monobina & Schwabe, Kurt A., 2014. "Where's the salt? A spatial hedonic analysis of the value of groundwater to irrigated agriculture," Agricultural Water Management, Elsevier, vol. 145(C), pages 110-122.
    8. Reznik, Ami & Feinerman, Eli & Finkelshtain, Israel & Fisher, Franklin & Huber-Lee, Annette & Joyce, Brian & Kan, Iddo, 2017. "Economic implications of agricultural reuse of treated wastewater in Israel: A statewide long-term perspective," Ecological Economics, Elsevier, vol. 135(C), pages 222-233.
    9. Kovacs, Kent F. & Wailes, Eric J. & West, Grant & Popp, Jennie & Bektemirov, Kuatbay, 2013. "Optimal Spatial-Dynamic Management of Groundwater Conservation and Surface Water Quality with On-Farm Reservoirs," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162079, Southern Agricultural Economics Association.

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