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Economic Control of Groundwater Reserves
Author(s) -
Burt Oscar R.
Publication year - 1966
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1236865
Subject(s) - groundwater , context (archaeology) , function (biology) , water resource management , present value , structural basin , value (mathematics) , net (polyhedron) , net present value , optimal control , bellman equation , control (management) , environmental economics , environmental science , economics , natural resource economics , computer science , mathematical optimization , microeconomics , mathematics , production (economics) , mathematical economics , geology , statistics , geotechnical engineering , management , paleontology , geometry , finance , evolutionary biology , biology
Abstract Sequential decision theory is used to develop a framework for derivation of optimal groundwater policies focused on temporal allocation. The primary criterion of choice is expected present value of net output from the basin, and dispersion of net output is introduced as a secondary consideration. The expected‐present‐value function and its associated rate‐of‐use function under an optimal policy are discussed in the context of net social benefit as prerequisites to an economic solution to the problems of commonality encountered in the use of water from groundwater basins.