Groom, Ben; Swanson, Tim - In: Environmental & Resource Economics 26 (2003) 1, pp. 125-144
This paper uses a two-sector, two-period,spatial model of groundwater usage withstochastic surface water supply to illustratethe potential for the suboptimal management ofthe timing of groundwater uses. A ``timeprofile externality'' is said to exist when thetiming of groundwater extraction by...