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Theory of an Optimal Dynamical Water Resource Management Policy

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  • Ahmed, Muhammad Ashfaq
  • Nawaz, Nasreen

Abstract

Water markets even though not perfect and require a lot of effort to establish are considered as a robust tool to address water management issues around the world. However, the existing literature does not provide an optimal water resource management policy. To create a perfect water market, the government needs to identify the potential number of suppliers/producers and consumers of water against various extraction/supply/production rates of water, i.e., to identify a supply and a demand curve for number of suppliers/producers of water against each production rate in economy. This article presents a theory which is practically applicable for an optimal dynamical water resource management policy.

Suggested Citation

  • Ahmed, Muhammad Ashfaq & Nawaz, Nasreen, 2022. "Theory of an Optimal Dynamical Water Resource Management Policy," MPRA Paper 125737, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:125737
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    File URL: https://mpra.ub.uni-muenchen.de/125737/1/MPRA_paper_125737.pdf
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    References listed on IDEAS

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    3. Brennan, Donna C., 2006. "Water policy reform in Australia: lessons from the Victorian seasonal water market," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(3), pages 1-21, September.
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    5. Zaman, A.M. & Malano, H.M. & Davidson, B., 2009. "An integrated water trading-allocation model, applied to a water market in Australia," Agricultural Water Management, Elsevier, vol. 96(1), pages 149-159, January.
    6. Donna Brennan, 2006. "Water policy reform in Australia: lessons from the Victorian seasonal water market ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(3), pages 403-423, September.
    7. van Heerden, Jan H. & Blignaut, James & Horridge, Mark, 2008. "Integrated water and economic modelling of the impacts of water market instruments on the South African economy," Ecological Economics, Elsevier, vol. 66(1), pages 105-116, May.
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    More about this item

    Keywords

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    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H27 - Public Economics - - Taxation, Subsidies, and Revenue - - - Other Sources of Revenue

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