We examine the role of investment opportunities on the marginal cost of a backstop technology and the resulting implications for optimal depletion of a non-renewable resource. We consider the case in which two economic agents (individuals, cities, or nations) compete for a non-renewable...

We examine the potential gains from cooperation in the withdrawal of water from the Hueco Bolson aquifer that provides a substantial portion of municipal water supplies in El Paso, Texas and Ciudad Juarez, Mexico. The aquifer lies beneath the international border, and both cities operate...

We examine the potential gains from cooperation in the withdrawal of water from the Hueco Bolson aquifer that provides municipal water supply for El Paso, Texas and Ciudad Juarez, Mexico. The aquifer lies beneath the international border, and both cities operate independently regarding pumping...