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Optimum Exploitation of Groundwater Reserves with Saltwater Intrusion
Author(s) -
Cummings R. G.
Publication year - 1971
Publication title -
water resources research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.863
H-Index - 217
eISSN - 1944-7973
pISSN - 0043-1397
DOI - 10.1029/wr007i006p01415
Subject(s) - depreciation (economics) , saltwater intrusion , groundwater , investment (military) , current (fluid) , environmental science , marginal value , production (economics) , natural resource economics , present value , value (mathematics) , economics , water resource management , aquifer , microeconomics , geology , mathematics , finance , capital formation , financial capital , geotechnical engineering , profit (economics) , oceanography , politics , political science , law , statistics
The optimal intertemporal rate of exploitation of groundwater stocks in coastal areas with the intrusion of salt water is studied. A model is presented that focuses on the interrelated problems concerning the annual rate of pumping and the annual rate of investment in pumping equipment, and so forth, in which the effects of current decisions on future benefits are included (e.g., impacts of lower stocks and therefore higher future pumping costs, and increased rates of saltwater intrusion). Periodic extractions are carried to the point where the value of water in current use equals the marginal present value of water in storage. The value of water in storage includes marginal effects of current production on intrusion, pumping costs, and capital consumption. The conjunctively determined periodic rate of investment is that which equates marginal investment costs with the present value of future production attributable to larger pumping and distribution systems, discounted by depreciation rates.