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Renewable Resource Management with Stock Externalities: Coastal Aquifers and Submarine Groundwater Discharge

Author

Listed:
  • Sittidaj Pongkijvorasin

    (Chulalongkorn University)

  • James Roumasset

    (University of Hawaii at Manoa)

  • Thomas Kaeo Duarte

    (Kamehameha Schools)

  • Kimberly Burnett

    (University of Hawaii Economic Research Organization)

Abstract

This paper develops a hydrologic-ecologic-economic model of groundwater use. Particularly, we model coastal groundwater management and its effects on submarine groundwater discharge, nearshore marine water quality, and marine biota. We show that incorporating the external effects on nearshore resources increases the optimal sustainable steady-state head level. Numerical simulations are illustrated using data from the Kuki’o region on the island of Hawaii. Two different approaches for incorporating the nearshore resource are examined. Including algae’s market value in the objective function results in only slightly lower rates of extraction. When a minimum constraint is placed on the stock of the keystone species, however, greater conservation may be indicated. The constraint also results in non-monotonic paths of water extraction, head level, and water price in the optimal solution.

Suggested Citation

  • Sittidaj Pongkijvorasin & James Roumasset & Thomas Kaeo Duarte & Kimberly Burnett, 2008. "Renewable Resource Management with Stock Externalities: Coastal Aquifers and Submarine Groundwater Discharge," Working Papers 200808, University of Hawaii at Manoa, Department of Economics.
  • Handle: RePEc:hai:wpaper:200808
    Note: Revised version of WP:07-13, Coastal Groundwater Management with Nearshore Resource Interactions
    as

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    File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_08-8R.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Pongkijvorasin, Sittidaj & Burnett, Kimberly & Wada, Christopher, 2018. "Joint Management of an Interconnected Coastal Aquifer and Invasive Tree," Ecological Economics, Elsevier, vol. 146(C), pages 125-135.
    2. Thomas Kaeo Duarte & Sittidaj Pongkijvorasin & James Roumasset & Daniel Amato & Kimberly Burnett, 2010. "Optimal Management of a Hawaiian Coastal Aquifer with Near-Shore Marine Ecological Interactions," Working Papers 2010-08, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    3. Kimberly Burnett & Christopher Wada & Aiko Endo & Makoto Taniguchi, 2016. "The Economic Value of Groundwater in Obama," Working Papers 2016-8, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    4. Kimberly Burnett & James Roumasset & Sittidaj Pongkijvorasin & Christopher Wada, 2014. "Incentivizing interdependent resource management: watersheds, groundwater, and coastal ecology," Working Papers 2014-9, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    5. Encarna Esteban & Ariel Dinar, 2013. "Cooperative Management of Groundwater Resources in the Presence of Environmental Externalities," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(3), pages 443-469, March.
    6. James Roumasset & Christopher Wada, 2014. "Integrated Groundwater Resource Management," Working Papers 201414, University of Hawaii at Manoa, Department of Economics.
    7. Wada, Christopher A. & Pongkijvorasin, Sittidaj & Burnett, Kimberly M., 2020. "Mountain-to-sea ecological-resource management: Forested watersheds, coastal aquifers, and groundwater dependent ecosystems," Resource and Energy Economics, Elsevier, vol. 59(C).
    8. Kimberly Burnett & James Roumasset & Christopher Wada, 2014. "Cost Optimal Joint Management of Interdependent Resources: Groundwater vs. Kiawe (Prosopis pallida)," Working Papers 2014-6, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.

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    More about this item

    Keywords

    groundwater management; marine ecology; dynamic optimization; safe minimum standard; sustainability science;
    All these keywords.

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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