Journal ArticleDOI
Competition versus optimal control in groundwater pumping
Micha Gisser,David A. Sánchez +1 more
TLDR
In this paper, the authors compare the two strategies analytically and show that if the storage capacity of the aquifer is relatively large, the difference between them is so small that it can be ignored for practical consideration.Abstract:
This article considers one of the most important issues in water resources research, namely, the management of groundwater. Economists have long taken it for granted that the temporal allocation of groundwater would lead to welfare losses if left to the free market because all farmers pump from a common aquifer. Hence water economists studied extensively optimal control of temporal groundwater allocation. They never paused to compare the temporal allocation yielded by optimal control with the free market. In this article we prove by comparing the two strategies analytically that if the storage capacity of the aquifer is relatively large, the difference between them is so small that it can be ignored for practical consideration.read more
Citations
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Journal ArticleDOI
The common property aquifer as a differential game
TL;DR: In this paper, the authors compare open-loop and feedback equilibria in a common property aquifer model and show that the feedback solution captures both externalities and exacerbates the over-exploitation of the commons compared to the open-loops solution.
Journal ArticleDOI
Non-renewable groundwater use and groundwater depletion: a review
TL;DR: A comprehensive review of the state-of-the-art in research on non-renewable groundwater use and groundwater depletion can be found in this article, where the authors focus on the interaction between groundwater withdrawal, recharge and surface water.
Posted Content
Current Issues in the Economics of Groundwater Resource Management
TL;DR: In this paper, the authors present a 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.
Journal ArticleDOI
Current issues in the economics of groundwater resource management
TL;DR: In this article, the authors present a 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.
Journal ArticleDOI
Benefits from Groundwater Management: Magnitude, Sensitivity, and Distribution
Eli Feinerman,Keith C. Knapp +1 more
TL;DR: In this article, the authors reported that the tax revenues received under a system of pump taxes are four to five times as large as the benefits from management, and that groundwater users gain under quotas but may suffer substantial welfare losses under pump taxes.
References
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Book
Mathematical Theory of Optimal Processes
TL;DR: The fourth and final volume in this comprehensive set presents the maximum principle as a wide ranging solution to nonclassical, variational problems as discussed by the authors, which can be applied in a variety of situations, including linear equations with variable coefficients.
Journal ArticleDOI
The Mathematical Theory of Optimal Processes
Richard Bellman,L. S. Pontryagin,V. G. Boltyanskii,Revaz Valerianovich Gamkrelidze,E. F. Mishchenko,K. N. Trirogoff,Lucien W. Neustadt +6 more
Journal ArticleDOI
The Structure of a Contract and the Theory of a Non-Exclusive Resource
TL;DR: The problem of finding a useful concept of analysis is not only slow and painful, but also may go astray and attain nothing useful as mentioned in this paper, and a more useful approach, I think, is via contractual conditions.
Book
Optimal Control Theory
TL;DR: In this article, the optimal control theory of optimal control has been studied in the context of control theory for optimal control of finite-dimensional systems. The American Mathematical Monthly: Vol. 83, No. 4, pp. 225-239.
Journal ArticleDOI
Optimal Resource Use Over Time with an Application to Ground Water
TL;DR: This paper is concerned with optimal allocation over time of a single resource which is either fixed in supply or only partially renewable at a point in time.
Related Papers (5)
The Externalities Associated with the Common Property Exploitation of Groundwater
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Benefits from Groundwater Management: Magnitude, Sensitivity, and Distribution
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