EconPapers    
Economics at your fingertips  
 

Managing a common-pool resource with no stock externality: The case of artesian aquifers

Hubert Stahn and Agnes Tomini

No 1935, AMSE Working Papers from Aix-Marseille School of Economics, France

Abstract: This paper studies a specific class of common-pool resources whereby rivalry is not characterized by competition for the resource stock. Artesian aquifers have been identified as a typical example, since the stock is never depleted, even when part of the resource is extracted. We first propose a dynamic model to account for relevant features of such aquifers-like water pressure, or well yield-and to characterize the corresponding dynamics. We then compare the social optimum and the private exploitation of an open-access aquifer. The comparison of these two equilibria allows us to highlight the existence of a new source of inefficiency. We refer to this as pressure externality. This externality results in the long run in an additional number of wells for the same water consumption, and hence additional costs. Finally, we characterize a specific stock-depend tax to neutralize the pressure externality.

Keywords: common-pool resource; externality; optimal management; public regulation; dynamic optimization (search for similar items in EconPapers)
JEL-codes: C61 H21 H23 Q15 Q25 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2019-12
New Economics Papers: this item is included in nep-env and nep-ore
References: Add references at CitEc
Citations:

Downloads: (external link)
https://new.amse-aixmarseille.fr/sites/default/fil ... /wp_2019_-_nr_35.pdf (application/pdf)

Related works:
Working Paper: Managing a common-pool resource with no stock externality: The case of artesian aquifers (2019) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aim:wpaimx:1935

Access Statistics for this paper

More papers in AMSE Working Papers from Aix-Marseille School of Economics, France AMU-AMSE - 5-9 Boulevard Maurice Bourdet, CS 50498 - 13205 Marseille Cedex 1. Contact information at EDIRC.
Bibliographic data for series maintained by Gregory Cornu (gregory.cornu@univ-amu.fr).

 
Page updated 2024-12-30
Handle: RePEc:aim:wpaimx:1935