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Dynamic Feedback between Surface and Groundwater Systems: Implications for Conjunctive Management

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  • Cobourn, Kelly M.

Abstract

A key feature of hydrologically connected surface and groundwater stocks is the two-way exchange of water between the systems. Increasing water scarcity, particularly in arid environments, has spurred debate on how to coordinate management of the two resources. In this paper, I present a model that describes the dynamic feedback loop between surface and groundwater systems when economic agents withdraw water from both for use in production. I use the model to describe optimal water extraction from both stocks and to evaluate how a conjunctive management policy shifts welfare between surface and groundwater user groups. Finally, I explore the importance of accounting for two-way feedback between the two stocks, when it exists, in estimating the benefits to a conjunctive management system. I estimate that the returns to conjunctive management in a closed system are greater than 6.5 times that in a system with an open feedback loop between water stocks.

Suggested Citation

  • Cobourn, Kelly M., 2011. "Dynamic Feedback between Surface and Groundwater Systems: Implications for Conjunctive Management," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103893, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea11:103893
    DOI: 10.22004/ag.econ.103893
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    References listed on IDEAS

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    1. Tsur, Yacov & Graham-Tomasi, Theodore, 1991. "The buffer value of groundwater with stochastic surface water supplies," Journal of Environmental Economics and Management, Elsevier, vol. 21(3), pages 201-224, November.
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    3. Knapp Keith C. & Olson Lars J., 1995. "The Economics of Conjunctive Groundwater Management with Stochastic Surface Supplies," Journal of Environmental Economics and Management, Elsevier, vol. 28(3), pages 340-356, May.
    4. Provencher Bill & Burt Oscar, 1993. "The Externalities Associated with the Common Property Exploitation of Groundwater," Journal of Environmental Economics and Management, Elsevier, vol. 24(2), pages 139-158, March.
    5. Eli Feinerman & Keith C. Knapp, 1983. "Benefits from Groundwater Management: Magnitude, Sensitivity, and Distribution," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(4), pages 703-710.
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