Groundwater spatial dynamics and endogenous well location

Groundwater economic models have refined optimal extraction rules while lagging behind in the study of optimal spatial policies. This paper develops a theoretical model to estimate welfare gains from optimal groundwater management when the choice variable set is expanded to include well location dec...

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Main Author: Katic, Pamela G.
Format: Journal Article
Language:Inglés
Published: Springer 2015
Subjects:
Online Access:https://hdl.handle.net/10568/58447
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author Katic, Pamela G.
author_browse Katic, Pamela G.
author_facet Katic, Pamela G.
author_sort Katic, Pamela G.
collection Repository of Agricultural Research Outputs (CGSpace)
description Groundwater economic models have refined optimal extraction rules while lagging behind in the study of optimal spatial policies. This paper develops a theoretical model to estimate welfare gains from optimal groundwater management when the choice variable set is expanded to include well location decisions as well as optimal groundwater extraction paths. Our theoretical results show that if there is spatial heterogeneity in groundwater, the welfare gains from optimal location of wells are substantial even if extraction rates are unregulated. Furthermore, second-best economically defined spacing regulations may possibly have better efficiency results (and lower implementation costs) than first-best uniform taxes or quotas. An application of the model to a real-world aquifer shows the importance of including well location decisions in spatially differentiated groundwater models and the need for (1) robust estimates of the gains from optimal management and; (2) spatially explicit regulations.
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spelling CGSpace584472025-06-17T08:24:16Z Groundwater spatial dynamics and endogenous well location Katic, Pamela G. groundwater extraction water management aquifers economic aspects wells welfare hydrology models Groundwater economic models have refined optimal extraction rules while lagging behind in the study of optimal spatial policies. This paper develops a theoretical model to estimate welfare gains from optimal groundwater management when the choice variable set is expanded to include well location decisions as well as optimal groundwater extraction paths. Our theoretical results show that if there is spatial heterogeneity in groundwater, the welfare gains from optimal location of wells are substantial even if extraction rates are unregulated. Furthermore, second-best economically defined spacing regulations may possibly have better efficiency results (and lower implementation costs) than first-best uniform taxes or quotas. An application of the model to a real-world aquifer shows the importance of including well location decisions in spatially differentiated groundwater models and the need for (1) robust estimates of the gains from optimal management and; (2) spatially explicit regulations. 2015-01 2015-03-17T14:39:59Z 2015-03-17T14:39:59Z Journal Article https://hdl.handle.net/10568/58447 en Limited Access Springer Katic, Pamela G. 2014. Groundwater spatial dynamics and endogenous well location. Water Resources Management, 29(1):181-196. doi: https://doi.org/10.1007/s11269-014-0834-5
spellingShingle groundwater extraction
water management
aquifers
economic aspects
wells
welfare
hydrology
models
Katic, Pamela G.
Groundwater spatial dynamics and endogenous well location
title Groundwater spatial dynamics and endogenous well location
title_full Groundwater spatial dynamics and endogenous well location
title_fullStr Groundwater spatial dynamics and endogenous well location
title_full_unstemmed Groundwater spatial dynamics and endogenous well location
title_short Groundwater spatial dynamics and endogenous well location
title_sort groundwater spatial dynamics and endogenous well location
topic groundwater extraction
water management
aquifers
economic aspects
wells
welfare
hydrology
models
url https://hdl.handle.net/10568/58447
work_keys_str_mv AT katicpamelag groundwaterspatialdynamicsandendogenouswelllocation