In this paper, I evaluate the welfare implications of shortages in renewable resources, and investigate the effects of cross-subsidization on these shortages. I set up a stochastic dynamic programming model in which a benevolent central planner allocates the resource for multiple user-groups...

We develop a framework to analyze urban water tariff setting and its welfare implications and apply it to a panel of cities in the People's Republic of China in the 2000s. First, we find that peer cities' water tariff levels have a significant influence on a city's choice of tariffs. We use the...