Are the gains from a groundwater management policy so low?
The point of departure of this work is Gisser and Sanchez' (1980) result according to which a groundwater management policy would not generate significant gains with respect to a situation with no control. The theoretical result is obviously checked for a fixed number of agents if the storage capacity of the aquifer is relatively large. We propose to add an entry component into Rubio and Casino's (2001) adaptation from Gisser and Sanchez' (1980) seminal model in order to make the number of farmers exploiting the resource endogenous. We then show that, at the steady state, the Gisser and Sanchez' result is not true anymore since the rent at the stationary equilibrium is zero, although it is positive if a central planner intervenes.
|Date of creation:||29 Mar 2010|
|Date of revision:|
|Contact details of provider:|| Postal: UMR CESAER 26 bd Docteur Petitjean 21000 Dijon France|
Web page: http://www2.dijon.inra.fr/cesaer
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Koundouri, Phoebe & Christou, Christina, 2006.
"Dynamic adaptation to resource scarcity and backstop availability: theory and application to groundwater,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 50(2), June.
- Phoebe Koundouri & Christina Christou, 2006. "Dynamic adaptation to resource scarcity and backstop availability: theory and application to groundwater ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(2), pages 227-245, 06.
- 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.
- Sanchirico, James N. & Wilen, James E., 1999. "Bioeconomics of Spatial Exploitation in a Patchy Environment," Journal of Environmental Economics and Management, Elsevier, vol. 37(2), pages 129-150, March.
- H. Scott Gordon, 1954. "The Economic Theory of a Common-Property Resource: The Fishery," Journal of Political Economy, University of Chicago Press, vol. 62, pages 124.
- C.S. Kim & Glenn Schaible, 2000. "Economic Benefits Resulting From Irrigation Water Use: Theory and an Application to Groundwater Use," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(1), pages 73-87, September.
- Kim, C. S. & Moore, Michael R. & Hanchar, John J. & Nieswiadomy, Michael, 1989. "A dynamic model of adaptation to resource depletion: theory and an application to groundwater mining," Journal of Environmental Economics and Management, Elsevier, vol. 17(1), pages 66-82, July.
When requesting a correction, please mention this item's handle: RePEc:ceo:wpaper:3. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Corinne DASEN)
If references are entirely missing, you can add them using this form.