Economic Allocation of Water Use in the Santa Cruz Border Region: A Static Model with Decision Rules

Keith Willet () and Sanchari Gosh ()

No 1613, Economics Working Paper Series from Oklahoma State University, Department of Economics and Legal Studies in Business

Abstract: The research discussed in this paper is concerned with the twin cities of Nogales, Sonora-Nogales, Arizona and the Santa Cruz River. The headwaters for the Santa Cruz River are in southeastern Arizona where the river flows south, crossing the U.S.-Mexico border into the state of Sonora. The river eventually turns north in Sonora and flows back to the U.S.-Mexico border, crossing back into Arizona near this set of Twin cities. The management of this river and its related resources are the focus of this paper. This paper is organized as follows. First, the following section provides a discussion of the geographic location of the Santa Cruz River. This section also includes a discussion of the specific water resource management issues that are of particular concern in the study region. A "stylized" water resource management model is presented in the Section 3. Section 4 will focus on the marginal decision rules that correspond with the maximization of net benefits of water resources management for the Santa Cruz River Basin as a hydrologic unit. We will discuss a range of water pricing and allocation rules that will fit within the existing institutional structure for water resource management

Pages: 26 pages
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:okl:wpaper:1613

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