2018
DOI: 10.1016/j.jhydrol.2018.08.071
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Comparing Alternative Policies for Modification of Energy Subsidies: The Case of Groundwater Pumping for Irrigation

Abstract: The present paper studies the effects of alternative modifications of a subsidy for electricity used to pump groundwater on the behavior of profit maximizing groundwater users. It proposes a stylized model for groundwater extraction, and then numerically derives general results by simulation. The model is applied to aquifers in Leon, Guanajuato, Mexico and Kern County, California. The performance of two traditional policy intervention measures-subsidy elimination and reduction-are compared to a new, innovative… Show more

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Cited by 7 publications
(2 citation statements)
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“…A hand-picked set of works presented in [100,101], and elsewhere are summarized in Table 2. While experimental economics is growing in coverage of water issues, the table below identifies five major issues for which experimental economics approaches are reported in this review, including water conservation, water markets, subsidy regulations, watershed management, and international water [102][103][104][105][106][107][108][109][110][111][112][113].…”
Section: Experimental Economicsmentioning
confidence: 99%
See 1 more Smart Citation
“…A hand-picked set of works presented in [100,101], and elsewhere are summarized in Table 2. While experimental economics is growing in coverage of water issues, the table below identifies five major issues for which experimental economics approaches are reported in this review, including water conservation, water markets, subsidy regulations, watershed management, and international water [102][103][104][105][106][107][108][109][110][111][112][113].…”
Section: Experimental Economicsmentioning
confidence: 99%
“…Water markets [106] Water markets and instream values [107] Water quality trading [108] Agricultural subsidies to regulate water quality [109] Electricity subsidies and GW level Subsidy regulations [110] Electricity subsidies and GW level [111] Electricity subsidies and GW level [112] Collective action for watershed management Watershed mgt. [113] Issue linkage International water…”
Section: Published Articlementioning
confidence: 99%