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Renewable resource management with stock externalities: Coastal aquifers and submarine groundwater discharge

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  • Pongkijvorasin, Sittidaj
  • Roumasset, James
  • Duarte, Thomas Kaeo
  • Burnett, Kimberly

Abstract

We model coastal groundwater management and its effects on submarine groundwater discharge, nearshore marine water quality, and marine biota. Incorporating the stock externality effects on nearshore resources increases the optimal sustainable steady-state levels of both the aquifer head and the stock of a keystone native algae species. Numerical simulations are illustrated using data from the Kuki'o region on the Island of Hawaii. Two different approaches for incorporating the nearshore resource are examined. Including algae's market value in the objective function results in only slightly lower rates of groundwater extraction. When a minimum constraint is placed on the stock of the keystone species, however, greater conservation may be indicated. The constraint also results in non-monotonic paths of water extraction, head level, and marginal opportunity cost of water in the optimal solution.

Suggested Citation

  • Pongkijvorasin, Sittidaj & Roumasset, James & Duarte, Thomas Kaeo & Burnett, Kimberly, 2010. "Renewable resource management with stock externalities: Coastal aquifers and submarine groundwater discharge," Resource and Energy Economics, Elsevier, vol. 32(3), pages 277-291, August.
  • Handle: RePEc:eee:resene:v:32:y:2010:i:3:p:277-291
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    References listed on IDEAS

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    Cited by:

    1. Encarna Esteban & Ariel Dinar, 2013. "Cooperative Management of Groundwater Resources in the Presence of Environmental Externalities," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(3), pages 443-469, March.
    2. Sittidaj Pongkijvorasin & Kimberly Burnett & Christopher Wada, 2017. "Joint Management of an Interconnected Coastal Aquifer and Invasive Tree," Working Papers 2017-8, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    3. James Roumasset & Christopher Wada, 2014. "Integrated Groundwater Resource Management," Working Papers 201414, University of Hawaii at Manoa, Department of Economics.
    4. Thomas Kaeo Duarte & Sittidaj Pongkijvorasin & James Roumasset & Daniel Amato & Kimberly Burnett, 2010. "Optimal Management of a Hawaiian Coastal Aquifer with Near-Shore Marine Ecological Interactions," Working Papers 2010-08, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    5. Kimberly Burnett & Christopher Wada & Aiko Endo & Makoto Taniguchi, 2016. "The Economic Value of Groundwater in Obama," Working Papers 2016-8, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    6. Kimberly Burnett & James Roumasset & Sittidaj Pongkijvorasin & Christopher Wada, 2014. "Incentivizing interdependent resource management: watersheds, groundwater, and coastal ecology," Working Papers 2014-9, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    7. Kimberly Burnett & James Roumasset & Christopher Wada, 2014. "Cost Optimal Joint Management of Interdependent Resources: Groundwater vs. Kiawe (Prosopis pallida)," Working Papers 2014-6, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    8. repec:eee:ecolec:v:146:y:2018:i:c:p:125-135 is not listed on IDEAS

    More about this item

    Keywords

    Groundwater management Marine ecology Dynamic optimization Safe minimum standard Sustainability science;

    JEL classification:

    • 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
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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