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Three Essays on the Economics of Groundwater Extraction

Three Essays on the Economics of Groundwater Extraction
Author: Pamela Giselle Katic
Publisher:
Total Pages: 360
Release: 2011
Genre: Groundwater
ISBN:

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The primary contribution of this thesis is to develop a series of hydroeconomic models to act as solution-oriented tools to conduct integrated groundwater management and provide fresh policy insights. Using spatially detailed economic and hydrologic data from a real-world aquifer, this thesis examines key groundwater management problems and suggests policies that might be used to control such systems. The thesis consists of three main essays focusing on issues in groundwater spatial dynamics and the design of optimal regulations. The first essay explores the importance of including well location decisions in spatially differentiated groundwater models to provide robust estimates of the gains from optimal management. Using a spatially differentiated and dynamic model of endogenous well location, this essay compares optimal and competitive extraction paths and well location decisions under alternative hypotheses as to the spatial distribution of groundwater.


Three Essays on the Economics of Groundwater Management Institutions

Three Essays on the Economics of Groundwater Management Institutions
Author: Eric C. Edwards
Publisher:
Total Pages: 138
Release: 2014
Genre:
ISBN: 9781321201710

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The first chapter explores how properties of an aquifer influence the incentives of groundwater irrigators to engage in collective management. Using data from Kansas, counties with high hydraulic conductivity, a measure of how "common" the groundwater resource is, are shown to benefit more from management, among other results. The chapter demonstrates the benefit of directing management based on physical properties of a resource.


The Routledge Handbook of Agricultural Economics

The Routledge Handbook of Agricultural Economics
Author: Gail L. Cramer
Publisher: Routledge
Total Pages: 806
Release: 2018-07-17
Genre: Business & Economics
ISBN: 1317225767

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This Handbook offers an up-to-date collection of research on agricultural economics. Drawing together scholarship from experts at the top of their profession and from around the world, this collection provides new insights into the area of agricultural economics. The Routledge Handbook of Agricultural Economics explores a broad variety of topics including welfare economics, econometrics, agribusiness, and consumer economics. This wide range reflects the way in which agricultural economics encompasses a large sector of any economy, and the chapters present both an introduction to the subjects as well as the methodology, statistical background, and operations research techniques needed to solve practical economic problems. In addition, food economics is given a special focus in the Handbook due to the recent emphasis on health and feeding the world population a quality diet. Furthermore, through examining these diverse topics, the authors seek to provide some indication of the direction of research in these areas and where future research endeavors may be productive. Acting as a comprehensive, up-to-date, and definitive work of reference, this Handbook will be of use to researchers, faculty, and graduate students looking to deepen their understanding of agricultural economics, agribusiness, and applied economics, and the interrelationship of those areas.


Essays on the Economics of Water

Essays on the Economics of Water
Author: Nicholas William Hagerty
Publisher:
Total Pages: 165
Release: 2018
Genre:
ISBN:

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This thesis studies three questions in the economics of water resource management. Chapter 1 estimates the economic gains available from greater use of large-scale water markets in California. I develop a revealed-preference empirical approach that exploits observed choices in the existing water market, and I apply it to comprehensive new data on California’s water economy. This approach overcomes the challenge posed by transaction costs, which insert an unobservable wedge between observed prices and marginal valuations. First, I directly estimate transaction costs and use them to recover equilibrium marginal valuations. Then, I use supply shocks to estimate price elasticities of demand, which govern how marginal valuations vary with quantity. I find even a relatively modest market scenario would create additional benefits of $480 million per year, which can be weighed against both the benefits of existing market restrictions and the setup costs of larger-scale markets. Chapter 2 estimates the possible costs of industrial water pollution to agriculture in India, focusing on 63 industrial sites identified by the central government as “severely polluted.” I exploit the spatial discontinuity in pollution concentrations that these sites generate along a river. First, I show that these sites do in fact coincide with a large, discontinuous rise in pollutant concentrations in the nearest river. Then, I find some evidence that agricultural revenues may be substantially lower in districts immediately downstream of polluting sites, relative to districts immediately upstream of the same site in the same year. These results suggest that damages to agriculture could represent a major cost of water pollution. Chapter 3, co-authored with Ariel Zucker, presents an experimental protocol for a project that pays smallholder farmers in India to reduce their consumption of groundwater. This project will test the effectiveness of payments for voluntary conservation – a policy instrument that may be able to sidestep regulatory constraints common in developing countries. It will also measure the price response of demand for groundwater in irrigated agriculture, a key input to many possible reforms. Evidence from a pilot suggests that the program may have reduced groundwater pumping by a large amount, though confidence intervals are wide.


Routledge Handbook of Water Economics and Institutions

Routledge Handbook of Water Economics and Institutions
Author: Kimberly Burnett
Publisher: Routledge
Total Pages: 427
Release: 2014-12-05
Genre: Business & Economics
ISBN: 1317916255

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Growing scarcity of freshwater worldwide brings to light the need for sound water resource modeling and policy analysis. While a solid foundation has been established for many specific water management problems, combining those methods and principles in a unified framework remains an ongoing challenge. This Handbook aims to expand the scope of efficient water use to include allocation of sources and quantities across uses and time, as well as integrating demand-management with supply-side substitutes. Socially efficient water use does not generally coincide with private decisions in the real world, however. Examples of mechanisms designed to incentivize efficient behavior are drawn from agricultural water use, municipal water regulation, and externalities linked to water resources. Water management is further complicated when information is costly and/or imperfect. Standard optimization frameworks are extended to allow for coordination costs, games and cooperation, and risk allocation. When operating efficiently, water markets are often viewed as a desirable means of allocation because a market price incentivizes users to move resources from low to high value activities. However, early attempts at water trading have run into many obstacles. Case studies from the United States, Australia, Europe, and Canada highlight the successes and remaining challenges of establishing efficient water markets.


Three Essays on the Economics of Water Rights

Three Essays on the Economics of Water Rights
Author: Karin Audrey Donhowe
Publisher:
Total Pages: 96
Release: 2016
Genre:
ISBN: 9781369341256

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Finally, in the third chapter I explore differences in Bureau of Reclamation (BOR) water management across its projects. BOR delivers water to farmers in Western states based on long-term contracts with irrigation districts that specify how much land can be irrigated, the quantity of water allotted per acre, and terms of payment. There is variation across Reclamation projects in terms of rights ownership, water allocation, and the ability to transfer water. These areas of institutional variation affect the security of farmers' claims to water, and security of rights in turn affects investment decisions, crop choice, and the value of water rights. This paper documents water management across five of the largest BOR irrigation projects and evaluates the implications of the variation.


Essays on User Response to Alternative Policies to Modifying Subsidies for Groundwater Extraction

Essays on User Response to Alternative Policies to Modifying Subsidies for Groundwater Extraction
Author: Edgar Humberto Tellez Foster
Publisher:
Total Pages: 106
Release: 2016
Genre: Groundwater
ISBN:

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This present set of three essays analyzes the effects of and possible solutions to a common problem in many countries, namely, the over-exploitation of groundwater due to implementation of pervasive subsidies for electricity used for pumping. It uses Mexico as an example of the consequences, and subsequently proposes solutions to this problem. The first essay analyzes in a dynamic framework the effects of the subsidy and simulates different policy scenarios to analyze the possible outcomes of an eventual subsidy modification; this serves as the primary analysis that produces several testable hypotheses for our experimental work. Results from computer simulations for two different aquifers (León, Guanajuato and Kern County, California) suggest that elimination and decoupling have the same impact in reducing withdrawals from the aquifer and both interventions reach a less deep height to the water table. Using laboratory experiments, the second essay studies how the subjects determine their extraction decisions, conditional on different subsidy modification arrangements, we observe that the theoretical predictions suggest that elimination and decoupling the subsidy from the electricity price have the same effect and reducing the subsidy has a smaller effect when compared with the latter, the experimental results from the laboratory showed us that among the three policy interventions, decoupling the subsidy had the largest effect, this makes it a viable policy intervention when considering the political difficulties of eliminating or reducing a subsidy. The third essay will use the same model and experimental design described in Essay 2 to test the policy scenarios in the field, with actual stakeholders (farmers). Results show that farmers' behavior follows the predictions of the model and differ from that of students in the impact of each policy intervention. In the field experiments elimination had the largest effect followed very closely by decoupling, and as predicted reduction had the smallest effect. These results support those obtained in the laboratory experiments where we observed decoupling as a viable policy intervention and a possible solution to groundwater over exploitation in the existence of pumping subsidies.


Essays on the Economics of Agricultural and Residential Water Management

Essays on the Economics of Agricultural and Residential Water Management
Author: Oliver R. Browne
Publisher:
Total Pages: 119
Release: 2018
Genre:
ISBN: 9780438088108

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Ensuring the efficient allocation of water resources among end users has become crucial in light of increasing climate variability and the high capital and environmental costs of developing new supply. However, within the two largest sectors of water consumption -- agricultural users and residential users -- the different nature of water use and governing institutions gives rise to different challenges in allocating water across competing demands. This dissertation comprises two essays, both case studies evaluating policies to improve water management in each sector respectively. Informed by different settings, I use novel data and methods to estimate impacts of the distinct reforms. The two chapters provide lessons about how policymakers in either sector can improve water management in the future.