Krulce, Darrell; Roumasset, James A.; Wilson, Tom - In: American Journal of Agricultural Economics 79 (1997) 4, pp. 1218-1228
The nonrenewable-with-backstop model of resource management is extended to cover renewables and applied to the case of coastal groundwater. In the optimal management trajectory, efficiency price exceeds extraction cost by the sum of scarcity rent and “drawdown” cost, the latter remaining...