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Managing Water Scarcity: An Evaluation of Interregional Transfers
Author(s) -
Vaux H. J.,
Howitt Richard E.
Publication year - 1984
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/wr020i007p00785
Subject(s) - drawdown (hydrology) , scarcity , supply and demand , water scarcity , work (physics) , water supply , natural resource economics , groundwater , economics , water resource management , demand management , groundwater resources , water resources , environmental science , business , environmental engineering , microeconomics , aquifer , engineering , ecology , biology , mechanical engineering , geotechnical engineering , macroeconomics
An interregional trade model is developed for assessing the potential of limited market institutions to alleviate water scarcity. The model differs from those of Takayama and Judge, since curvilinear demand functions are employed and an unequal number of supply and demand regions are specified. The model is applied to California using regional supply and demand functions estimated for 1980, 1995, and 2020. The results show that water transfers can be substituted for new supplies to the extent that less than 100,000 ac ft (123 × 10 6 m 3 ) of new capacity could be justified by 2020. The net benefits to buyers and sellers total $66 million for 1980 and rise to $219 million by 2020. The work also demonstrates that trade would lead to premature drawdown of groundwater resources in the absence of management and might create excess supply capacity for urban regions.