On the Economics of Optimal Urban Groundwater Management in the Desert Southwest

摘要: Climate change and population growth anticipate the need for efficient, sustainable, long-term groundwater management. Groundwater serves as primary water source approximately 80 percent of public systems in United States many more a secondary source. Traditionally management relies on to meet rising demand by increasing supply, but climate uncertainty require judicious achieve efficiency sustainability. Over pumping leads overdraft jeopardizes ability future users depend resource. Optimal urban is solution this conundrum. This paper investigates what extent under circumstances optimally controlled improves social welfare. It considers hydro-economic framework finds optimal path price path. These enable identify benefit scarcity rent, tool sustainably manage resources. The numerically illustrates model with Albuquerque, New Mexico case study. Albuquerque results indicate that, presence strong growth, welfare 22 percent, lengthens resource, provides planners mechanism