On the Theory and Practice of Water Regulation

We study water regulation for a schematic water economy representing a wide range of real world situations. A water policy has inter- and intra-temporal components. The first determines the limits on extractions from the naturally replenished sources, given the stochastic nature of recharge processes associated with uncertain precipitation. The intra-temporal regulation is concerned mainly with the allocating of the extracted and produced water among the end-users. The prices that implement the optimal intra-temporal allocation are derived. Regulation issues associated with cost recovery and asymmetric information are discussed.


Issue Date:
Jan 15 2009
Publication Type:
Working or Discussion Paper
PURL Identifier:
http://purl.umn.edu/47503
JEL Codes:
C61; D82; Q11; Q25
Series Statement:
Discussion Papers
1.09




 Record created 2017-04-01, last modified 2017-08-25

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