The Dynamic Impacts of Pricing Groundwater

Ellen Bruno, Katrina K. Jessoe and W. Michael Hanemann

Journal of the Association of Environmental and Resource Economists, 2024, vol. 11, issue 5, 1201 - 1227

Abstract: This study evaluates own-price dynamics in taxing environmental externalities. We exploit a natural experiment that exposed some firms to a large and persistent price increase for groundwater, a setting characterized by incomplete markets. Using five years of posttreatment data on farm-level water use, we find that water conservation doubles between the first and fifth year of the tax. Failure to account for dynamics in policies designed to manage groundwater will mischaracterize the price elasticity of demand and introduce efficiency costs.

Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://dx.doi.org/10.1086/728988 (application/pdf)
http://dx.doi.org/10.1086/728988 (text/html)
Access to the online full text or PDF requires a subscription.

Related works:
Working Paper: The Dynamic Impacts of Pricing Groundwater (2023)
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:ucp:jaerec:doi:10.1086/728988

Access Statistics for this article

More articles in Journal of the Association of Environmental and Resource Economists from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().