Premium
COSTS OF CALIFORNIA's CORRELATIVE RIGHTS DOCTRINE AS A SOLUTION TO GROUNDWATER OVERDRAFT
Author(s) -
HAMPTON NATHAN ERIC
Publication year - 1990
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.1990.tb00305.x
Subject(s) - groundwater , san joaquin , property rights , adjudication , property value , eminent domain , easement , natural resource economics , lease , incentive , economics , law and economics , law , environmental science , real estate , political science , finance , microeconomics , engineering , geotechnical engineering , soil science
This paper reports the present value of groundwater use under alternative institutional structures for the eastern portion of California's San Joaquin Valley. The Gisser‐Sanchez model, with data from the California Department of Water Resources, produced these results. The paper, through the use of an optimal control model, shows that private property rights outperform common property rights as an institutional guide to groundwater use. Furthermore, the paper shows that adjudicating groundwater rights under claim of adverse possession gives rise to a discounted flow of future income which, when compared with that of common property, gives the incentive to adjudicate groundwater rights.