A dynamic model of adaptation to resource depletion: theory and an application to groundwater mining

Kim, C.S; Hanchar, John J.; Nieswiadomy, Michael

doi:10.1016/0095-0696(89)90037-5

Cited by 81 publications

(51 citation statements)

References 17 publications

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“…Thus, in the study's proposed conditions, GSE persists when the adaptation measures to salinity are incorporated in the analysis. Kim et al (1989) who developed an n-stage optimal control model incorporating the opportunity for adaptation to resource depletion in Texas High Plains, found similar evidence. The main implication of this finding is that under competitive and unlimited groundwater exploitation, adoption of a technique aimed at reducing yield losses is an unavoidable necessity.…”

Section: Discussionsupporting

confidence: 50%

Economic analysis of the long-term effects of groundwater salinity: bringing the farmer’s perspectives into policy

Giannoccaro

Scardigno

Prosperi

2017

Journal of Integrative Environmental Sciences

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This research estimates the economic losses at the farm level caused by groundwater over-exploitation and by seawater intrusion. The problem of coastal groundwater salinity was tackled by considering its hydrological, agronomic and economic aspects. Economic analysis for competitive use vs. regulated management regimes was carried out, considering constant and adaptive watering techniques. We concentrate on the farmers' perspective of water as an input in agriculture, and assess discounted net present value over a period of 30 years. The ultimate goal of this research is to raise the awareness of farmers and policy makers by demonstrating the economic impacts (from the farmer's point of view) of over-exploitation. Our findings for Apulia Region (Southern Italy) indicate that the slowness of the longterm effect of salinity and the ability of farmers to adapt irrigation profiles suggest broadening the perspective of policy intervention. For an effective management of this common resource, policy makers should follow a more comprehensive approach based on economic analysis.

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Section: Discussionsupporting

confidence: 50%

Economic analysis of the long-term effects of groundwater salinity: bringing the farmer’s perspectives into policy

Giannoccaro

Scardigno

Prosperi

2017

Journal of Integrative Environmental Sciences

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“…A typical study was that of Kim [15], who applied the basic model to the Texas High Plains based on empirically estimated water demand functions, and also modified the model to allow users to plant different irrigated crops as the aquifer declines. The estimated welfare gains from optimal management were quite small (less than 3.7%).…”

Section: Notesmentioning

confidence: 99%

Groundwater use under incomplete information

Saak

Peterson

2007

Journal of Environmental Economics and Management

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This paper introduces a game theoretic model of groundwater extraction in a two-cell aquifer under incomplete information. A novel assumption is that individual users have incomplete knowledge of the speed of lateral flows in the aquifer: although a user is aware that his neighbor's water use has some influence on his future water stock, he is uncertain about the degree of this impact. We find that the lack of information may either increase or decrease the rate of water use and welfare. In a two-period framework, the relevant characteristic is the ratio of the periodic marginal benefits of water use. Depending on whether this ratio is convex or concave, the average speed with which the aquifer is depleted decreases or increases when users learn more about the local hydrologic properties of groundwater. In principle, welfare may decrease even in cases when the groundwater allocation is closer to the efficient groundwater allocation.

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“…Kim et al (1989) developed an n-stage optimal control model that incorporated the opportunity for adaptation to resource depletion. The model suggested two supplementary traits to a conventional intertemporal depletion path: the relative allocation of groundwater among irrigated crops and endogenous switch times describing an intertemporal cropping pattern.…”

Section: Allowing Variable Economic Relations and Endogenous Rates Ofmentioning

confidence: 99%

Current Issues in the Economics of Groundwater Resource Management

Koundouri

2004

Journal of Economic Surveys

177

125

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Abstract. The issue of groundwater management remains a practical concern in many regions throughout the world, while water managers continue to grapple with the question of how to manage this resource. In this article, we attempt to bring the most advanced and appropriate tools to bear on the issue of resource allocation involving groundwater. Our objective is to demonstrate the state of the art in the literature on ways to think about this complex resource and to deal with the important economic issues emanating from its complexity. We present the conceptual framework within which economists examine the elements interacting in the management of groundwater resources, indicate why the role of the market is limited with respect to the price of this very complex resource, and point to the mechanisms that can pull competitive groundwater price and quality-graded quantity of groundwater in line with their equilibrium levels. In particular, we critically review economic models of groundwater use, examine the potential for groundwater management, discuss the difficulties encountered in the estimation of the relevant control variables of such models, and identify the advantages and limitations of the instruments devised for the efficient use (allocation) of this resource. Finally, we argue that devised regulatory schemes usually ignore the information and knowledge needed for their implementation, and we suggest a core of conditions necessary for successful groundwater management reforms.

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A dynamic model of adaptation to resource depletion: theory and an application to groundwater mining

Cited by 81 publications

References 17 publications

Economic analysis of the long-term effects of groundwater salinity: bringing the farmer’s perspectives into policy

Economic analysis of the long-term effects of groundwater salinity: bringing the farmer’s perspectives into policy

Groundwater use under incomplete information

Current Issues in the Economics of Groundwater Resource Management

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