EconPapers    
Economics at your fingertips  
 

Regulating Groundwater Use in Developing Countries: A Feasible Instrument for Public Intervention

Lars Hansen, Frank Jensen and Eirik S. Amundsen

Journal of Institutional and Theoretical Economics (JITE), 2014, vol. 170, issue 2, 317-335

Abstract: Worldwide groundwater is a common-pool resource that is potentially subject to the tragedy of the commons if water extraction is not adequately regulated. In developing countries the regulatory infrastructure is often too weak to allow detailed monitoring of individual groundwater extraction. For this reason, classical public intervention instruments, such as consumption fees or tradable quotas, are infeasible. Here we present a theoretical foundation for a new public regulatory instrument that can potentially generate the same efficiency-inducing incentives as fees and tradable quotas, but without their information and monitoring requirements. The instrument we propose is a tax based on aggregate extraction rather than on individual extraction measures.

JEL-codes: Q25 Q28 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mohrsiebeck.com/en/article/regulating- ... 45614x13867465880983 (text/html)
Fulltext access is included for subscribers to the printed version.

Related works:
Working Paper: Regulating groundwater use in developing countries: a feasible instrument for public intervention (2011) 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:mhr:jinste:urn:sici:0932-4569(201406)170:2_317:rguidc_2.0.tx_2-5

Ordering information: This journal article can be ordered from
Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany

DOI: 10.1628/093245613X13867465880983

Access Statistics for this article

Journal of Institutional and Theoretical Economics (JITE) is currently edited by Gerd Mühlheußer and Bayer, Ralph-C

More articles in Journal of Institutional and Theoretical Economics (JITE) from Mohr Siebeck, Tübingen
Bibliographic data for series maintained by Thomas Wolpert ().

 
Page updated 2025-03-31
Handle: RePEc:mhr:jinste:urn:sici:0932-4569(201406)170:2_317:rguidc_2.0.tx_2-5