Over the past several decades, market-based approaches to natural resource management have received increased attention as a means to cost-effectively achieve environmental quality goals. Following on what has been hailed a success for reducing air pollution, water quality trading (WQT) has more...

A class of dynamic models is developed to assess potential gains from management of groundwater in arid and semi-arid regions in the presence of technical change. The aquifer is a common-pool resource (CPR) because users typically hold the right to pump groundwater but do not own the water...

This paper studies the divergence in the planning and equilibrium solutions for a multicell aquifer with heterogeneity in cell depths. A spatial model is developed that explicitly accounts for the lateral movement of water between cells. The optimal planning problem maximizes the discounted...

We examine the effects of irrigation technology subsidies using a model of inter- temporal common pool groundwater use with substitutable technology and declining yields from groundwater stocks, where pumping cost and stock externalities arise from the common property problem. We employ an...

Irrigation water demand is estimated using field-level panel data from Kansas over 16 years. The cost of pumping varies over time due to changes in energy prices and across space due to differences in the depth to water. Exploiting this variation allows us to estimate the demand elasticity while...