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Ecosystem Shifts: Implications for Groundwater Management

Author

Listed:
  • Encarna Esteban

    (University of Zaragoza
    IA2 (Instituto Agroalimentario de Aragón, Universidad de Zaragoza-CITA))

  • Elena Calvo

    (IA2 (Instituto Agroalimentario de Aragón, Universidad de Zaragoza-CITA)
    University of Zaragoza)

  • Jose Albiac

    (IA2 (Instituto Agroalimentario de Aragón, Universidad de Zaragoza-CITA)
    International Institute for Applied Systems Analysis - IASA)

Abstract

Freshwater ecosystems provide a large number of benefits to society. However, extensive human activities threat the viability of these ecosystems, their habitats, and their dynamics and interactions. One of the main risks facing these systems is the overexploitation of groundwater resources that hinders the survival of several freshwater habitats. In this paper, we study optimal groundwater paths when considering freshwater ecosystems. We contribute to existing groundwater literature by including the possibility of regime shifts in freshwater ecosystems into a groundwater management problem. The health of the freshwater habitat, which depends on the groundwater level, presents a switch in its status that occurs when a critical water level (‘tipping point’) is reached. Our results highlight important differences in optimal extraction paths and optimal groundwater levels compared with traditional models. The outcomes suggest that optimal groundwater withdrawals are non-linear and depend on the critical threshold and the ecosystem’s health function. Our results show that the inclusion of regime shifts in water management calls for a reformulation of water policies to incorporate the structure of ecosystems and their interactions with the habitat.

Suggested Citation

  • Encarna Esteban & Elena Calvo & Jose Albiac, 2021. "Ecosystem Shifts: Implications for Groundwater Management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 79(3), pages 483-510, July.
  • Handle: RePEc:kap:enreec:v:79:y:2021:i:3:d:10.1007_s10640-021-00569-7
    DOI: 10.1007/s10640-021-00569-7
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    1. Tiho Ancev & Karunagaran Madhavan, 2023. "Size matters: Optimal management of dynamic systems with varying size," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(1), pages 137-153, January.

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    More about this item

    Keywords

    Aquatic ecosystems; Groundwater management; Non-linear functions; Ecosystems health; Shifts in ecosystems; Tipping point; Two-stage optimal control problem;
    All these keywords.

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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