The Economics of Commonly Owned Groundwater When User Demand Is Perfectly Inelastic

Autor:	Chenggang Wang, Eduardo Segarra
Jazyk:	angličtina
Rok vydání:	2011
Předmět:	common-pool resources groundwater extraction groundwater management groundwater use irrigation water demand optimal control pumping externality water demand elasticity Agriculture
Zdroj:	Journal of Agricultural and Resource Economics, Vol 36, Iss 1, Pp 95-120 (2011)
Druh dokumentu:	article
ISSN:	1068-5502 2327-8285
DOI:	10.22004/ag.econ.105533
Popis:	This paper provides a theoretical analysis of the common-pool resource dilemma in extracting nonrenewable groundwater resources when water demand is perfectly inelastic. It complements the existing theory of groundwater use, which assumes away the possibility of demand perfect inelasticity. Under perfectly inelastic water demand, the common-pool resource dilemma is by-passed if groundwater users are equally productive in water use. If they are not, a new type of inefficiency can arise due to the lack of a rationing mechanism on the basis of productivity. Our analysis suggests that groundwater management research should pay more attention to water demand elasticity and productivity heterogeneity.
Databáze:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/45831cb6f792458695fb1aa8d0bd4aff Zobrazit plný text záznamu View record in DOAJ