IDEAS home Printed from https://ideas.repec.org/a/wsi/wepxxx/v04y2018i03ns2382624x18500030.html
   My bibliography  Save this article

The Economics of Agricultural Groundwater Management Institutions: The Case of California

Author

Listed:
  • Louis Sears

    (Charles H. Dyson School of Applied Economics and Management, Cornell University, USA)

  • David Lim

    (Charles H. Dyson School of Applied Economics and Management, Cornell University, USA)

  • C.-Y. Cynthia Lin Lawell

    (Charles H. Dyson School of Applied Economics and Management, Cornell University, USA)

Abstract

The sustainable management of groundwater resources for use in agriculture is a critical issue in California and globally. Many of the world’s most productive agricultural basins depend on groundwater and have experienced declines in water table levels. The food consumers eat, the farmers who produce that food, and the local economies supporting that production are all affected by the availability of groundwater. Increasing competition for water from cities and environmental needs, as well as concerns about future climate variability and more frequent droughts, has caused policy-makers to look for ways to decrease the consumptive use of water. When designing groundwater management policies and institutions, it is important to consider any possible perverse consequences from the policy. In this paper, we discuss the economics of sustainable agricultural groundwater management institutions, including the possible perverse consequences of incentive-based agricultural groundwater conservation programs; the importance of dynamic management, conjunctive management, and spatial management; and property rights.

Suggested Citation

  • Louis Sears & David Lim & C.-Y. Cynthia Lin Lawell, 2018. "The Economics of Agricultural Groundwater Management Institutions: The Case of California," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(03), pages 1-21, July.
    • Handle: RePEc:wsi:wepxxx:v:04:y:2018:i:03:n:s2382624x18500030
    DOI: 10.1142/S2382624X18500030
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S2382624X18500030
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S2382624X18500030?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. C.-Y. Cynthia Lin Lawell, 2016. "The Management of Groundwater: Irrigation Efficiency, Policy, Institutions, and Externalities," Annual Review of Resource Economics, Annual Reviews, vol. 8(1), pages 247-259, October.
    2. Nicholas Brozović & David Sunding & David Zilberman, 2006. "Optimal Management of Groundwater over Space and Time," Natural Resource Management and Policy, in: Renan-Ulrich Goetz & Dolors Berga (ed.), Frontiers in Water Resource Economics, chapter 0, pages 109-135, Springer.
    3. Louis Sears & David Lim & C.-Y. Cynthia Lin Lawell, 2019. "Spatial Groundwater Management: A Dynamic Game Framework and Application to California," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-34, January.
    4. 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.
    5. Santiago Rubio & Begoña Casino, 2003. "Strategic Behavior and Efficiency in the Common Property Extraction of Groundwater," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(1), pages 73-87, September.
    6. Pfeiffer, Lisa & Lin, C.-Y. Cynthia, 2010. "The Effect of Irrigation Technology on Groundwater Use," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 25(3), pages 1-6.
    7. Khanna, Madhu & Zilberman, David, 2017. "Theme Overview: Inducing Water Conservation in Agriculture: Institutional and Behavioral Drivers," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 32(4), November.
    8. Rebecca Taylor & David Zilberman, 2017. "Diffusion of Drip Irrigation: The Case of California," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(1), pages 16-40.
    9. Paul J. Ferraro & Michael K. Price, 2013. "Using Nonpecuniary Strategies to Influence Behavior: Evidence from a Large-Scale Field Experiment," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 64-73, March.
    10. Basharat A. Pitafi & James A. Roumasset, 2009. "Pareto-Improving Water Management over Space and Time: The Honolulu Case," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(1), pages 138-153.
    11. Eli Feinerman & Keith C. Knapp, 1983. "Benefits from Groundwater Management: Magnitude, Sensitivity, and Distribution," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(4), pages 703-710.
    12. Pfeiffer, Lisa & Lin, C.-Y. Cynthia, 2012. "Groundwater pumping and spatial externalities in agriculture," Journal of Environmental Economics and Management, Elsevier, vol. 64(1), pages 16-30.
    13. Steven M. Smith & Krister Andersson & Kelsey C. Cody & Michael Cox & Darren Ficklin, 2017. "Responding to a Groundwater Crisis: The Effects of Self-Imposed Economic Incentives," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(4), pages 985-1023.
    14. Hendricks, Nathan P. & Peterson, Jeffrey M., 2012. "Fixed Effects Estimation of the Intensive and Extensive Margins of Irrigation Water Demand," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 37(1), pages 1-19, April.
    15. Stefan Koppmair & Menale Kassie & Matin Qaim, 2017. "The influence of farm input subsidies on the adoption of natural resource management technologies," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(4), pages 539-556, October.
    16. Saak, Alexander E. & Peterson, Jeffrey M., 2007. "Groundwater use under incomplete information," Journal of Environmental Economics and Management, Elsevier, vol. 54(2), pages 214-228, September.
    17. Nathaniel H Merrill & Todd Guilfoos, 2018. "Optimal Groundwater Extraction under Uncertainty and a Spatial Stock Externality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(1), pages 220-238.
    18. Dinar, Ariel & Ashraf, Arisha & Reints, Julie, 2017. "Farmer Adoption of Water Management Practices in Response to Recurrent Drought," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 32(4), November.
    19. Wallander, Steven, 2017. "USDA Water Conservation Efforts Reflect Regional Differences," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 32(4), November.
    20. Zilberman, David & Taylor, Rebecca & Shim, Myung Eun & Gordon, Ben, 2017. "How Politics and Economics Affect Irrigation and Conservation," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 32(4), November.
    21. Eric C. Edwards, 2016. "What Lies Beneath? Aquifer Heterogeneity and the Economics of Groundwater Management," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(2), pages 453-491.
    22. Eswaran, Mukesh & Lewis, Tracy R, 1984. "Appropriability and the Extraction of a Common Property Resource," Economica, London School of Economics and Political Science, vol. 51(204), pages 393-400, November.
    23. Jordan F. Suter & Joshua M. Duke & Kent D. Messer & Holly A. Michael, 2012. "Behavior in a Spatially Explicit Groundwater Resource: Evidence from the Lab," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(5), pages 1094-1112.
    24. Kuwayama, Yusuke & Brozović, Nicholas, 2013. "The regulation of a spatially heterogeneous externality: Tradable groundwater permits to protect streams," Journal of Environmental Economics and Management, Elsevier, vol. 66(2), pages 364-382.
    25. Ferraro, Paul & Messer, Kent D. & Wu, Shang, 2017. "Applying Behavioral Insights to Improve Water Security," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 32(4), November.
    26. Bertone Oehninger, Ernst & Lin Lawell, C.-Y. Cynthia, 2021. "Property rights and groundwater management in the High Plains Aquifer," Resource and Energy Economics, Elsevier, vol. 63(C).
    27. repec:ags:jrapmc:122312 is not listed on IDEAS
    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. Louis Sears & Joseph Caparelli & Clouse Lee & Devon Pan & Gillian Strandberg & Linh Vuu & C. -Y. Cynthia Lin Lawell, 2018. "Jevons’ Paradox and Efficient Irrigation Technology," Sustainability, MDPI, vol. 10(5), pages 1-12, May.
    2. Godwin Kwabla Ekpe & Anna A. Klis, 2023. "Spillover Effects in Irrigated Agriculture from the Groundwater Commons," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(3), pages 469-507, November.
    3. Bertone Oehninger, Ernst & Lin Lawell, C.-Y. Cynthia, 2021. "Property rights and groundwater management in the High Plains Aquifer," Resource and Energy Economics, Elsevier, vol. 63(C).
    4. Louis Sears & David Lim & C.-Y. Cynthia Lin Lawell, 2019. "Spatial Groundwater Management: A Dynamic Game Framework and Application to California," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-34, January.

    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. Louis Sears & David Lim & C.-Y. Cynthia Lin Lawell, 2019. "Spatial Groundwater Management: A Dynamic Game Framework and Application to California," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-34, January.
    2. Louis Sears & Joseph Caparelli & Clouse Lee & Devon Pan & Gillian Strandberg & Linh Vuu & C. -Y. Cynthia Lin Lawell, 2018. "Jevons’ Paradox and Efficient Irrigation Technology," Sustainability, MDPI, vol. 10(5), pages 1-12, May.
    3. Eric C. Edwards & Todd Guilfoos, 2021. "The Economics of Groundwater Governance Institutions across the Globe," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1571-1594, December.
    4. Dietrich Earnhart & Nathan P. Hendricks, 2023. "Adapting to water restrictions: Intensive versus extensive adaptation over time differentiated by water right seniority," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(5), pages 1458-1490, October.
    5. Bertone Oehninger, Ernst & Lin Lawell, C.-Y. Cynthia, 2021. "Property rights and groundwater management in the High Plains Aquifer," Resource and Energy Economics, Elsevier, vol. 63(C).
    6. Godwin Kwabla Ekpe & Anna A. Klis, 2023. "Spillover Effects in Irrigated Agriculture from the Groundwater Commons," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(3), pages 469-507, November.
    7. Ellen M. Bruno & Richard J. Sexton, 2020. "The Gains from Agricultural Groundwater Trade and the Potential for Market Power: Theory and Application," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(3), pages 884-910, May.
    8. Reinelt, Peter, 2020. "Spatial-dynamic seawater intrusion and pumping cost externalities in a confined aquifer," Resource and Energy Economics, Elsevier, vol. 59(C).
    9. Pfeiffer, Lisa & Lin, C.-Y. Cynthia, 2012. "Groundwater pumping and spatial externalities in agriculture," Journal of Environmental Economics and Management, Elsevier, vol. 64(1), pages 16-30.
    10. 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).
    11. Guilfoos, Todd & Pape, Andreas D. & Khanna, Neha & Salvage, Karen, 2013. "Groundwater management: The effect of water flows on welfare gains," Ecological Economics, Elsevier, vol. 95(C), pages 31-40.
    12. Ayres, Andrew B. & Edwards, Eric C. & Libecap, Gary D., 2018. "How transaction costs obstruct collective action: The case of California's groundwater," Journal of Environmental Economics and Management, Elsevier, vol. 91(C), pages 46-65.
    13. R. Aaron Hrozencik & Jordan F. Suter & Paul J. Ferraro & Nathan Hendricks, 2024. "Social comparisons and groundwater use: Evidence from Colorado and Kansas," American Journal of Agricultural Economics, John Wiley & Sons, vol. 106(2), pages 946-966, March.
    14. Rouhi Rad, Mani & Brozović, Nicholas & Foster, Timothy & Mieno, Taro, 2020. "Effects of instantaneous groundwater availability on irrigated agriculture and implications for aquifer management," Resource and Energy Economics, Elsevier, vol. 59(C).
    15. 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.
    16. Smith, Steven M., 2018. "Economic incentives and conservation: Crowding-in social norms in a groundwater commons," Journal of Environmental Economics and Management, Elsevier, vol. 90(C), pages 147-174.
    17. Bruno, Ellen M. & Jessoe, Katrina K. & Hanemann, Michael, 2023. "The Dynamic Impacts of Pricing Groundwater," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt2mx8q1td, Department of Agricultural & Resource Economics, UC Berkeley.
    18. Sears, Louis S. & Lin Lawell, C.-Y. Cynthia & Walter, M. Todd, 2020. "Groundwater Under Open Access: A Structural Model of the Dynamic Common Pool Extraction Game," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304276, Agricultural and Applied Economics Association.
    19. Qiuqiong Huang & Jinxia Wang & Scott Rozelle & Stephen Polasky & Yang Liu, 2013. "The Effects of Well Management and the Nature of the Aquifer on Groundwater Resources," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(1), pages 94-116.
    20. Quintana Ashwell, Nicolas E. & Peterson, Jeffrey M. & Hendricks, Nathan P., 2018. "Optimal groundwater management under climate change and technical progress," Resource and Energy Economics, Elsevier, vol. 51(C), pages 67-83.

    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:wsi:wepxxx:v:04:y:2018:i:03:n:s2382624x18500030. 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/wep/wep.shtml .

    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.