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Evaluating Institutional Alternatives for Managing an Interrelated Stream-Aquifer System

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  • Robert A. Young
  • Hubert J. Morel-Seytoux
  • John T. Daubert

Abstract

Farmers relying on the South Platte River in northeastern Colorado for irrigation water have been found to be adversely affected by pumping from a groundwater deposit associated with the river. A simulation model of the hydrologic-legal-farmer decision system is developed and employed to analyze several institutional alternatives for managing the system. The "augmentation plan" approach recently developed by the state was shown to yield highest net incomes under both normal water supply and drought scenarios while protecting the prior rights of river water users. Anticipated opportunity costs of ground water use are internalized into pumpers' decisions.

Suggested Citation

  • Robert A. Young & Hubert J. Morel-Seytoux & John T. Daubert, 1986. "Evaluating Institutional Alternatives for Managing an Interrelated Stream-Aquifer System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(4), pages 787-797.
    • Handle: RePEc:oup:ajagec:v:68:y:1986:i:4:p:787-797.
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    File URL: http://hdl.handle.net/10.2307/1242125
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    Cited by:

    1. Cobourn, Kelly M. & Amacher, Gregory S. & Elbakidze, Levan, 2015. "Bargaining for recharge: an analysis of cooperating and conjunctive surface water-groundwater management," 2016 Allied Social Sciences Association (ASSA) Annual Meeting, January 3-5, 2016, San Francisco, California 212843, Agricultural and Applied Economics Association.
    2. MASON Gaffney, 1992. "The Taxable Surplus In Water Resources," Contemporary Economic Policy, Western Economic Association International, vol. 10(4), pages 74-82, October.
    3. Koundouri, Phoebe, 2000. "Three approaches to measuring natural resource scarcity: theory and application to groundwater," MPRA Paper 38265, University Library of Munich, Germany.
    4. 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.
    5. Tesfaye Woldeyohanes & Arnim Kuhn & Thomas Heckelei & Lalisa Duguma, 2021. "Modeling Non-Cooperative Water Use in River Basins," Sustainability, MDPI, vol. 13(15), pages 1-21, July.
    6. Broomhall, David E. & Bosch, Darrell J., 1988. "The Effects of Alternative Minimum Instream Flow Requirements on Net Returns from Riparian Irrigation," 1988 Annual Meeting, August 1-3, Knoxville, Tennessee 270295, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Palazzo, Amanda & Brozović, Nicholas, 2014. "The role of groundwater trading in spatial water management," Agricultural Water Management, Elsevier, vol. 145(C), pages 50-60.
    8. Mason Gaffney, 2016. "Nature, Economy, and Equity: Sacred Water, Profane Markets," American Journal of Economics and Sociology, Wiley Blackwell, vol. 75(5), pages 1064-1231, November.

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