related to the level of investment in irrigation capacity and the other one to the irrigation level in each period. In the … period. Assuming a CARA utility function, we show that taxing the investment may entail an increase in preventive irrigation … although the investment decreases. Moreover, in the case of a logistic production function, the total water use is non …

In the literature investigating the impact of uncertainty on short-run and long-run investment, most authors have used … general ones and has the advantage of providing closed form solutions for both short-run investment rule and long-run rate of …