Book contents
- The Economics of Water Resources
- The Economics of Water Resources
- Copyright page
- Contents
- Figures
- Tables
- Acknowledgments
- Introduction and Outlook
- Chapter 1 The State of Water Resources and the Need for a Comprehensive Perspective
- Chapter 2 The Water Economy
- Chapter 3 Supply Costs, Demands and Benefits
- Chapter 4 Optimal Water Policy
- Chapter 5 Water Regulation
- Chapter 6 Accounting for Uncertain Water Supplies
- Chapter 7 Case Studies of Regulatory Interventions
- Chapter 8 Economy-Wide Considerations of Water Management
- Chapter 9 Management of Transboundary Waters
- Index
- References
Chapter 7 - Case Studies of Regulatory Interventions
Published online by Cambridge University Press: 21 April 2021
Book contents
- The Economics of Water Resources
- The Economics of Water Resources
- Copyright page
- Contents
- Figures
- Tables
- Acknowledgments
- Introduction and Outlook
- Chapter 1 The State of Water Resources and the Need for a Comprehensive Perspective
- Chapter 2 The Water Economy
- Chapter 3 Supply Costs, Demands and Benefits
- Chapter 4 Optimal Water Policy
- Chapter 5 Water Regulation
- Chapter 6 Accounting for Uncertain Water Supplies
- Chapter 7 Case Studies of Regulatory Interventions
- Chapter 8 Economy-Wide Considerations of Water Management
- Chapter 9 Management of Transboundary Waters
- Index
- References
Summary
The chapter presents case studies from Mexico and Spain of policy interventions that regulate groundwater extraction and use. The cases involve pricing, quotas, and removal of subsidies aimed at reducing negative externalities associated with groundwater over-pumping. The examples demonstrate the use of different policy instruments and their effects on the behavior of groundwater users in addressing negative externalities. The example from Mexico shows how a subsidy of electricity for pumping groundwater leads to perverse effects resulting in depletion of the aquifer. The example from Spain shows the negative effects of unregulated groundwater extracted for irrigation purposes on groundwater-dependent wetlands that contribute to ecosystem services.
Keywords
- Type
- Chapter
- Information
- The Economics of Water ResourcesA Comprehensive Approach, pp. 133 - 164Publisher: Cambridge University PressPrint publication year: 2021
References
Costello, C., and Karp, L.. 2004. Dynamic Taxes and Quotas with Learning. Journal of Economic Dynamics & Control, 28(8), 1661–1680.Google Scholar
Dinar, A. (ed.). 2000. The Political Economy of Water Pricing Reforms. London: Oxford University Press.Google Scholar
Easter, K. W., Rosegrant, M. W., and Dinar, A.. 1999. Formal and Informal Markets for Water: Institutions, Performance, and Constraints. World Bank Research Observer, 14(1), 99–116.Google Scholar
Esteban, E. 2010. Water As a Common Pool Resource: Collective Action in Groundwater Management and Nonpoint Pollution Abatement. Department of Applied Economics. University of Zaragoza, Zaragoza Spain.Google Scholar
Esteban, E., and Albiac, J.. 2011. Groundwater and Econosystems Damages: Questioning the Gisser-Sánchez Effect. Ecological Economics, 70, 2062–2069.Google Scholar
Esteban, E., and Dinar, A.. 2013a. Cooperative Management of Groundwater Resources in the Presence of Environmental Externalities. Environmental and Resource Economics, 54, 443–469.Google Scholar
Esteban, E., and Dinar, A.. 2013b. Modeling Sustainable Groundwater Management: Packaging and Sequencing of Policy Interventions. Journal of Environmental Management, 119, 93–102.Google Scholar
Esteban, E., and Dinar, A.. 2016. The Role of Groundwater-Dependent Ecosystems in Groundwater Management. Natural Resource Modeling, 29(1), 98–129.Google Scholar
Famiglietti, J. S. 2014. The Global Groundwater Crisis. Nature Climate Change, 4, 945–948.Google Scholar
Feinerman, E., and Knapp, K. C.. 1983. Benefits from Groundwater-Management: Magnitude, Sensitivity, and Distribution. American Journal of Agricultural Economics, 65(4), 703–710.Google Scholar
Koundouri, P. 2004. Current Issues in the Economics of Groundwater Resource Management. Journal of Economic Surveys, 18(5), 703–740.Google Scholar
Maddock, T., and Haimes, Y. Y.. 1975. Tax System for Groundwater Management. Water Resources Research, 11(1), 7–14.Google Scholar
Mukherji, A., and Shah, T.. 2005. Groundwater Socio-Ecology and Governance: A Review of Institutions and Polices in Selected Countries. Hydrogeology Journal, 13, 328–345.Google Scholar
Provencher, B., and Burt, O.. 1994. A Private Property-Rights Regime for the Commons – the Case for Groundwater. American Journal of Agricultural Economics, 76(4), 875–888.Google Scholar
Rinaudo, J. D., Montginoul, M., Varanda, M., and Bento, S.. 2012. Envisioning Innovative Groundwater Regulation Policies through Scenario Workshops in France and Portugal. Irrigation and Drainage, 61, 65–74.Google Scholar
Tellez-Foster, E., Rapoport, A., and Dinar, A., 2017. Groundwater and Electricity Consumption under Alternative Subsidies: Evidence from Laboratory Experiments. Journal of Behavioral and Experimental Economics, 68, 41–52.Google Scholar
Tellez-Foster, E., Rapoport, A., and Dinar, A., 2018a. Alternative Policies to Manage Electricity Subsidies for Groundwater Extraction: A Field Study in Mexico. Journal of Behavioral Economics for Policy, 2(2), 55–69.Google Scholar
Tellez-Foster, E., Rapoport, A., and Dinar, A., 2018b. Comparing Alternative Policies for Modification of Energy Subsidies: The Case of Groundwater Pumping for Irrigation. Journal of Hydrology, 565, 614–622.Google Scholar
Wada, Y., van Beek, L. P. H., van Kempen, C. M., Reckman, J. W. T. M., Vasak, S., and Bierkens, M.F. P.. 2010. Global Depletion of Groundwater Resources. Geophysical Research Letters, 37, L20402. doi:10.1029/2010GL044571.Google Scholar
Zekri, S. 2008. Using Economic Incentives and Regulations to Reduce Seawater Intrusion in the Batinah Coastal Area of Oman. Agricultural Water Management, 95(3), 243–252.Google Scholar