IDEAS home Printed from https://ideas.repec.org/a/kap/enreec/v26y2003i1p125-144.html
   My bibliography  Save this article

Missing Markets and Redundant Reservoirs

Author

Listed:
  • Ben Groom
  • Tim Swanson

Abstract

This paper uses a two-sector, two-period,spatial model of groundwater usage withstochastic surface water supply to illustratethe potential for the suboptimal management ofthe timing of groundwater uses. A ``timeprofile externality'' is said to exist when thetiming of groundwater extraction by one set ofusers impacts on the time profile of wateravailability to another set of users. Theexistence of the time of use externalitydepends on the presence of importantdifferences in the preferences between thecontrol and non-control sectors. It alsodepends on the absence of the markets thatwould internalise these differences. Oneimportant implication of the existence of suchexternalities is that they can inducesub-optimal insurance investments in the formof water storage capital, i.e., unnecessarysurface water reservoirs. Copyright Kluwer Academic Publishers 2003

Suggested Citation

  • Ben Groom & Tim Swanson, 2003. "Missing Markets and Redundant Reservoirs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(1), pages 125-144, September.
    • Handle: RePEc:kap:enreec:v:26:y:2003:i:1:p:125-144
    DOI: 10.1023/A:1025677419600
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1023/A:1025677419600
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1023/A:1025677419600?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. Provencher Bill & Burt Oscar, 1993. "The Externalities Associated with the Common Property Exploitation of Groundwater," Journal of Environmental Economics and Management, Elsevier, vol. 24(2), pages 139-158, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Phoebe Koundouri & Ben Groom, 2002. "Groundwater Management: An Overview of Hydro-geology, Economic Values and Principles of Management," DEOS Working Papers 0203, Athens University of Economics and Business.
    2. Phoebe Koundouri, 2005. "Design and Implementation of an Integrated Water Management Approach," DEOS Working Papers 0501, Athens University of Economics and Business.
    3. Henry Thompson, 2013. "Resource Rights and Markets in a General Equilibrium Model of Production," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 56(1), pages 131-139, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Phoebe Koundouri, 2004. "Current Issues in the Economics of Groundwater Resource Management," Journal of Economic Surveys, Wiley Blackwell, vol. 18(5), pages 703-740, December.
    2. Cobourn, Kelly M., 2011. "Dynamic Feedback between Surface and Groundwater Systems: Implications for Conjunctive Management," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103893, Agricultural and Applied Economics Association.
    3. Msangi, Siwa, 2005. "Measuring the Gains to Groundwater Management with Recursive Utility," 2005 Annual meeting, July 24-27, Providence, RI 19212, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Carraro, Carlo & Marchiori, Carmen & Sgobbi, Alessandra, 2005. "Applications of negotiation theory to water issues," Policy Research Working Paper Series 3641, The World Bank.
    5. Brozovic, Nicholas & Sunding, David L. & Zilberman, David, 2004. "Measuring The Gains From Management Of Spatially Heterogeneous Resources: The Case Of Groundwater," 2004 Annual meeting, August 1-4, Denver, CO 20240, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Santiago J. Rubio Jorge & Begoña Casino, 1997. "Strategic behavior and efficiency in a groundwater pumping differential game," Working Papers. Serie EC 1997-18, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    7. Santiago J. Rubio & Juan P. Castro, 1996. "Long-run groundwater reserves under uncertainty," Investigaciones Economicas, Fundación SEPI, vol. 20(1), pages 71-88, January.
    8. Marita Laukkanen & Phoebe Koundouri, 2006. "Competition versus coopertion in groundwater extraction: A stochastic framework with heteregoneous agents," DEOS Working Papers 0606, Athens University of Economics and Business.
    9. Strand, Jon, 2010. "The full economic cost of groundwater extraction," Policy Research Working Paper Series 5494, The World Bank.
    10. Katrin Erdlenbruch & Raphael Soubeyran & Mabel Tidball & Agnes Tomini, 2012. "(Anti-)Coordination Problems with Scarce Water Resources," Working Papers 12-28, LAMETA, Universtiy of Montpellier, revised Sep 2012.
    11. Rubio, Santiago J. & Casino, Begona, 2001. "Competitive versus efficient extraction of a common property resource: The groundwater case," Journal of Economic Dynamics and Control, Elsevier, vol. 25(8), pages 1117-1137, August.
    12. Azaiez, M. N., 2002. "A model for conjunctive use of ground and surface water with opportunity costs," European Journal of Operational Research, Elsevier, vol. 143(3), pages 611-624, December.
    13. Alain Ayong Le Kama & Agnès Tomini, 2012. "Water Conservation versus Soil Salinity Control," Working Papers hal-04141151, HAL.
    14. Daniel Cooley & Steven M. Smith, 2022. "Center Pivot Irrigation Systems as a Form of Drought Risk Mitigation in Humid Regions," NBER Chapters, in: American Agriculture, Water Resources, and Climate Change, pages 135-171, National Bureau of Economic Research, Inc.
    15. Rouhi Rad, Mani & Haacker, Erin M.K. & Sharda, Vaishali & Nozari, Soheil & Xiang, Zaichen & Araya, A. & Uddameri, Venkatesh & Suter, Jordan F. & Gowda, Prasanna, 2020. "MOD$$AT: A hydro-economic modeling framework for aquifer management in irrigated agricultural regions," Agricultural Water Management, Elsevier, vol. 238(C).
    16. Pamela Katic, 2015. "Groundwater Spatial Dynamics and Endogenous Well Location," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 29(1), pages 181-196, January.
    17. James Roumasset & Christopher Wada, 2012. "The Economics of Groundwater," Working Papers 201211, University of Hawaii at Manoa, Department of Economics.
    18. 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).
    19. 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.
    20. Schuck, Eric C. & Green, Gareth P., 2002. "Supply-based water pricing in a conjunctive use system: implications for resource and energy use," Resource and Energy Economics, Elsevier, vol. 24(3), pages 175-192, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:enreec:v:26:y:2003:i:1:p:125-144. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.