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Benefits from Groundwater Management: Magnitude, Sensitivity, and Distribution
Author(s) -
Feinerman Eli,
Knapp Keith C.
Publication year - 1983
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 - 10.2307/1240458
Subject(s) - groundwater , revenue , welfare , schedule , environmental science , distribution (mathematics) , natural resource economics , water resource management , economics , business , finance , mathematics , market economy , mathematical analysis , geotechnical engineering , management , engineering
Abstract Empirical estimates of benefits from groundwater management are reported for an area in California with heavy reliance on groundwater supplies. Benefits are quite sensitive to the water demand schedule and interest rate but less sensitive to other parameters. However, in all cases considered the increases in welfare from groundwater management are less than ten percent. Tax revenues received under a system of pump taxes are four to five times as large as the benefits from management. Thus, groundwater users gain under a system of quotas but may suffer substantial welfare losses under pump taxes.