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The Economics of Agricultural Groundwater Management Institutions: The Case of California

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Listed:
  • Louis Sears

    (Charles H. Dyson School of Applied Economics and Management, Cornell University, USA)

  • David Lim

    (Charles H. Dyson School of Applied Economics and Management, Cornell University, USA)

  • C.-Y. Cynthia Lin Lawell

    (Charles H. Dyson School of Applied Economics and Management, Cornell University, USA)

Abstract

The sustainable management of groundwater resources for use in agriculture is a critical issue in California and globally. Many of the world’s most productive agricultural basins depend on groundwater and have experienced declines in water table levels. The food consumers eat, the farmers who produce that food, and the local economies supporting that production are all affected by the availability of groundwater. Increasing competition for water from cities and environmental needs, as well as concerns about future climate variability and more frequent droughts, has caused policy-makers to look for ways to decrease the consumptive use of water. When designing groundwater management policies and institutions, it is important to consider any possible perverse consequences from the policy. In this paper, we discuss the economics of sustainable agricultural groundwater management institutions, including the possible perverse consequences of incentive-based agricultural groundwater conservation programs; the importance of dynamic management, conjunctive management, and spatial management; and property rights.

Suggested Citation

  • Louis Sears & David Lim & C.-Y. Cynthia Lin Lawell, 2018. "The Economics of Agricultural Groundwater Management Institutions: The Case of California," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(03), pages 1-21, July.
    • Handle: RePEc:wsi:wepxxx:v:04:y:2018:i:03:n:s2382624x18500030
    DOI: 10.1142/S2382624X18500030
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    References listed on IDEAS

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    Cited by:

    1. Godwin Kwabla Ekpe & Anna A. Klis, 2023. "Spillover Effects in Irrigated Agriculture from the Groundwater Commons," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 86(3), pages 469-507, November.
    2. Bertone Oehninger, Ernst & Lin Lawell, C.-Y. Cynthia, 2021. "Property rights and groundwater management in the High Plains Aquifer," Resource and Energy Economics, Elsevier, vol. 63(C).
    3. Louis Sears & David Lim & C.-Y. Cynthia Lin Lawell, 2019. "Spatial Groundwater Management: A Dynamic Game Framework and Application to California," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-34, January.
    4. Louis Sears & Joseph Caparelli & Clouse Lee & Devon Pan & Gillian Strandberg & Linh Vuu & C. -Y. Cynthia Lin Lawell, 2018. "Jevons’ Paradox and Efficient Irrigation Technology," Sustainability, MDPI, vol. 10(5), pages 1-12, May.

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