IDEAS home Printed from https://ideas.repec.org/p/ags/huaedp/264871.html
   My bibliography  Save this paper

Water policy guidelines: A comprehensive approach

Author

Listed:
  • Yacov Tsur
  • Amos Zemel

Abstract

We study water management in the context of a prototypical water economy containing the main water sources and user sectors. A water policy consists of water allocation from each source to each user sector at each point of time as well as the capital investments needed to carry out these allocations. We show that the optimal policy brings the water capital stocks (infrastructure and equipment) to well-specified turnpike processes as rapidly as possible and evolves along these turnpikes thereafter, eventually converging to a unique steady state. Implications for water pricing are discussed

Suggested Citation

  • Yacov Tsur & Amos Zemel, 2017. "Water policy guidelines: A comprehensive approach," Discussion Papers 264871, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    • Handle: RePEc:ags:huaedp:264871
    DOI: 10.22004/ag.econ.264871
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/264871/files/water-wre-1.17.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/264871/files/water-wre-1.17.pdf?subformat=pdfa
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.264871?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. R. Maria Saleth & Ariel Dinar, 2004. "The Institutional Economics of Water," Books, Edward Elgar Publishing, number 3443.
    2. Yacov Tsur, 2009. "On the Economics of Water Allocation and Pricing," Annual Review of Resource Economics, Annual Reviews, vol. 1(1), pages 513-536, September.
    3. 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.
    4. Tsur, Yacov, 2016. "A water economy model," Discussion Papers 290049, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    5. Spence, A Michael & Starrett, David, 1975. "Most Rapid Approach Paths in Accumulation Problems," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(2), pages 388-403, June.
    6. Richard E. Just & David Zilberman & Eithan Hochman, 1983. "Estimation of Multicrop Production Functions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(4), pages 770-780.
    7. Baerenklau, Kenneth A. & Schwabe, Kurt & Dinar, Ariel, 2014. "Do Increasing Block Rate Water Budgets Reduce Residential Water Demand? A Case Study in Southern California," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170019, Agricultural and Applied Economics Association.
    8. Richard E. Howitt, 1995. "Positive Mathematical Programming," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 77(2), pages 329-342.
    9. Steven Renzetti, 1999. "Municipal Water Supply and Sewage Treatment: Costs, Prices and Distortions," Canadian Journal of Economics, Canadian Economics Association, vol. 32(3), pages 688-704, May.
    10. Mundlak, Yair, 2001. "Production and supply," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 1, pages 3-85, Elsevier.
    11. Tsur, Yacov & Zemel, Amos, 2000. "R&D policies for desalination technologies," Agricultural Economics, Blackwell, vol. 24(1), pages 73-85, December.
    12. Tsur, Yacov & Zemel, Amos, 2014. "Steady-state properties in a class of dynamic models," Journal of Economic Dynamics and Control, Elsevier, vol. 39(C), pages 165-177.
    13. Léonard,Daniel & Long,Ngo van, 1992. "Optimal Control Theory and Static Optimization in Economics," Cambridge Books, Cambridge University Press, number 9780521331586, September.
    14. B. L. Gardner & G. C. Rausser (ed.), 2001. "Handbook of Agricultural Economics," Handbook of Agricultural Economics, Elsevier, edition 1, volume 1, number 2.
    15. Mara Thiene & Yacov Tsur, 2013. "Agricultural Landscape Value and Irrigation Water Policy," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 641-653, September.
    16. 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.
    17. Kenneth A. Baerenklau & Kurt A. Schwabe & Ariel Dinar, 2014. "The Residential Water Demand Effect of Increasing Block Rate Water Budgets," Land Economics, University of Wisconsin Press, vol. 90(4), pages 683-699.
    18. B. L. Gardner & G. C. Rausser (ed.), 2001. "Handbook of Agricultural Economics," Handbook of Agricultural Economics, Elsevier, edition 1, volume 1, number 1.
    19. R. Maria Saleth & Ariel Dinar, 2004. "The Institutional Economics of Water : A Cross-Country Analysis of Institutions and Performance," World Bank Publications - Books, The World Bank Group, number 14884.
    20. Olmstead, Sheila M. & Michael Hanemann, W. & Stavins, Robert N., 2007. "Water demand under alternative price structures," Journal of Environmental Economics and Management, Elsevier, vol. 54(2), pages 181-198, September.
    21. Leizarowitz, Arie & Tsur, Yacov, 2012. "Renewable resource management with stochastic recharge and environmental threats," Journal of Economic Dynamics and Control, Elsevier, vol. 36(5), pages 736-753.
    22. Michael R. Moore & Noel R. Gollehon & Marc B. Carey, 1994. "Multicrop Production Decisions in Western Irrigated Agriculture: The Role of Water Price," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(4), pages 859-874.
    23. Loomis, John & Kent, Paula & Strange, Liz & Fausch, Kurt & Covich, Alan, 2000. "Measuring the total economic value of restoring ecosystem services in an impaired river basin: results from a contingent valuation survey," Ecological Economics, Elsevier, vol. 33(1), pages 103-117, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tsur, Yacov, 2020. "Optimal water pricing: Accounting for environmental externalities," Ecological Economics, Elsevier, vol. 170(C).
    2. Phoebe Koundouri, 2004. "Current Issues in the Economics of Groundwater Resource Management," Journal of Economic Surveys, Wiley Blackwell, vol. 18(5), pages 703-740, December.
    3. Desmet, Klaus & Rappaport, Jordan, 2017. "The settlement of the United States, 1800–2000: The long transition towards Gibrat’s law," Journal of Urban Economics, Elsevier, vol. 98(C), pages 50-68.
    4. Jia, Lili, 2012. "Land fragmentation and off-farm labor supply in China," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 66, number 66.
    5. Liang Lu & David Deller & Morten Hviid, 2019. "Price and Behavioural Signals to Encourage Household Water Conservation: Implications for the UK," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 33(2), pages 475-491, January.
    6. Petrick, Martin & Kloss, Mathias, 2013. "Identifying Factor Productivity from Micro-data: The case of EU agriculture," Working papers 144004, Factor Markets, Centre for European Policy Studies.
    7. Masahiko Gemma & Yacov Tsur, 2007. "The Stabilization Value of Groundwater and Conjunctive Water Management under Uncertainty ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(3), pages 540-548.
    8. Schuck, Eric C. & Green, Gareth P., 2002. "Supply-based water pricing in a conjunctive use system: implications for resource and energy use," Resource and Energy Economics, Elsevier, vol. 24(3), pages 175-192, June.
    9. Michael O'Donnell & Robert P. Berrens, 2018. "Understanding Falling Municipal Water Demand in a Small City Dependent on the Declining Ogallala Aquifer: Case Study of Clovis, New Mexico," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(04), pages 1-40, October.
    10. Jia, Lili & Petrick, Martin, 2011. "How land fragmentation affects off-farm labor supply in China: Evidence from household panel data," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114522, German Association of Agricultural Economists (GEWISOLA).
    11. Salvatore Falco & Melinda Smale & Charles Perrings, 2008. "The role of agricultural cooperatives in sustaining the wheat diversity and productivity: the case of southern Italy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 39(2), pages 161-174, February.
    12. Roberto ESPOSTI & Pierpaolo PIERANI, 2005. "Price, Private Demand and Optimal Provision of Public R&D in Italian Agriculture," Working Papers 238, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    13. Neal Hughes & Michael Lu & Wei Ying Soh & Kenton Lawson, 2022. "Modelling the effects of climate change on the profitability of Australian farms," Climatic Change, Springer, vol. 172(1), pages 1-22, May.
    14. Salomón Kalmanovitz & Enrique López, 2003. "Patrones de Desarrollo y Fuentes de Crecimiento de la Agricultura," Borradores de Economia 3315, Banco de la Republica.
    15. Jia, Lili & Petrick, Martin, 2014. "How does land fragmentation affect off-farm labor supply: panel data evidence from China," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 45(3), pages 369-380.
    16. Polome, Philippe & Harmignie, Olivier & Frahan, Bruno Henry de, 2006. "Farm-level Acreage Allocation under Risk," 2006 Annual meeting, July 23-26, Long Beach, CA 21306, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    17. Lin, Boqiang & Chen, Xing, 2018. "Is the implementation of the Increasing Block Electricity Prices policy really effective?--- Evidence based on the analysis of synthetic control method," Energy, Elsevier, vol. 163(C), pages 734-750.
    18. Zhang, Zibin & Cai, Wenxin & Feng, Xiangzhao, 2017. "How do urban households in China respond to increasing block pricing in electricity? Evidence from a fuzzy regression discontinuity approach," Energy Policy, Elsevier, vol. 105(C), pages 161-172.
    19. Wichman, Casey J. & Taylor, Laura O. & von Haefen, Roger H., 2016. "Conservation policies: Who responds to price and who responds to prescription?," Journal of Environmental Economics and Management, Elsevier, vol. 79(C), pages 114-134.
    20. Thomas Bolognesi, 2012. "Le système hydrique urbain : une grille d'analyse originale pour qualifier les défis de la gestion de l'eau dans les villes européennes," Post-Print halshs-00719372, HAL.

    More about this item

    Keywords

    Agricultural Finance;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:huaedp:264871. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/agrhuil.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.