Urban freshwater needs and spatial cost externalities for coastal aquifers: a theoretical approach

Michel Moreaux and Arnaud Reynaud
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Arnaud Reynaud: LERNA - Economie des Ressources Naturelles - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - INRA - Institut National de la Recherche Agronomique - CEA - Commissariat à l'énergie atomique et aux énergies alternatives

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Abstract: Saltwater intrusion in coastal aquifers is one of the main causes of groundwater quality degradation. These intrusions are often due to excessive withdrawals in sensitive parts of coastal aquifers. The scope of this paper is to identify specific problems set by optimal management of such a resource. To this end, we develop a simple spatial model describing a coastal aquifer under seawater intrusion. We show that water mining creates a specific cost externality between population spread over the aquifer. We then characterize the system of taxes that must be used to implement the optimum in a decentralized economy.

Keywords: NATURAL RESOURCE; URBAN WATER NEEDS; SPATIAL MODEL; GROUNDWATER; WATER PRICING (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (8)

Published in Regional Science and Urban Economics, 2006, 36 (2), pp.163-186. ⟨10.1016/j.regsciurbeco.2005.09.002⟩

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Journal Article: Urban freshwater needs and spatial cost externalities for coastal aquifers: A theoretical approach (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02659839

DOI: 10.1016/j.regsciurbeco.2005.09.002

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