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On the Theory and Practice of Water Regulation

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  • Tsur, Yacov

Abstract

We study water regulation for a schematic water economy representing a wide range of real world situations. A water policy has inter- and intra-temporal components. The first determines the limits on extractions from the naturally replenished sources, given the stochastic nature of recharge processes associated with uncertain precipitation. The intra-temporal regulation is concerned mainly with the allocating of the extracted and produced water among the end-users. The prices that implement the optimal intra-temporal allocation are derived. Regulation issues associated with cost recovery and asymmetric information are discussed.

Suggested Citation

  • Tsur, Yacov, 2009. "On the Theory and Practice of Water Regulation," Discussion Papers 47503, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    • Handle: RePEc:ags:huaedp:47503
    DOI: 10.22004/ag.econ.47503
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    Resource /Energy Economics and Policy;

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