2004
DOI: 10.1029/2003wr002162
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Optimal extraction from a renewable groundwater aquifer with stochastic recharge

Abstract: [1] This work considers the management of an aquifer with stochastic recharge and finite boundaries. For a class of such models we show that there is a positive threshold of the water stock that the manager should aim at keeping. Thus, under the optimal extraction regime at a time when the water stock is lower than this threshold, there should be no pumping from the aquifer, while at times when the water stock is greater than the threshold, all water in excess of the threshold level should be pumped. The thres… Show more

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Cited by 17 publications
(17 citation statements)
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“…The economic literature on optimisation models for groundwater management consists of several studies Burt 1993, 1994;Roseta-Palma 2002;Zeitouni 2004). In general, these researchers have applied differential games to explore use strategies by highlighting their efficiency and sustainability, but have not referred to non-cooperative bargaining models to depict water allocation processes among competing users.…”
Section: The Literature On Groundwater Managementmentioning
confidence: 99%
“…The economic literature on optimisation models for groundwater management consists of several studies Burt 1993, 1994;Roseta-Palma 2002;Zeitouni 2004). In general, these researchers have applied differential games to explore use strategies by highlighting their efficiency and sustainability, but have not referred to non-cooperative bargaining models to depict water allocation processes among competing users.…”
Section: The Literature On Groundwater Managementmentioning
confidence: 99%
“…For instance, Zeitouni (2004) explores the optimal management of aquifers when the stock is stochastic. Tsur and Zemel (1995) explore how the possibility of irreversible changes in groundwater resources affects the optimal management and allocation rules.…”
Section: Ground Water Managementmentioning
confidence: 99%
“…1 We comment on the pumping cost C(x, w), which depends on both the quantity of water withdrawn and the pumping cost per unit of water. In models used in the literature (for example, [1], [6], [14], [15], [16], [21], and [22]), the cost function has two characteristics:…”
Section: Modelmentioning
confidence: 99%
“…There are two main modeling paradigms used in the literature: the first based on optimal control of the continuous-time model, e.g., [1,5,11,12,15,16,18,19,22], and the second based on the dynamic programing formulation of the discretetime model, e.g., [7-10, 13, 14, 21]. In this article, we focus on the second paradigm.…”
Section: Introductionmentioning
confidence: 99%