Externality and common-pool resources: The case of artesian aquifers

Hubert Stahn and Agnes Tomini

Post-Print from HAL

Abstract: This study examines a specific class of common-pool resources whereby rivalry is not characterized by competition for the resource stock. Artesian aquifers are a typical example of such resources since the stock never depletes, even when part of the resource is extracted. We first propose a dynamic model to account for the relevant features of such aquifers such as the water pressure and well yield and characterize the corresponding dynamics. We then compare the social optimum with the private exploitation of an open-access aquifer. The comparison of these two equilibria highlights the existence of a new source of inefficiency. In the long run, this so-called pressure externality results in an additional number of wells for the same water consumption, thereby raising costs. Finally, we characterize a specific stock-dependent tax to neutralize the pressure externality.

Keywords: Common-pool resource; Externality; Optimal management; Public regulation; Dynamic optimization (search for similar items in EconPapers)
Date: 2021-09
New Economics Papers: this item is included in nep-env
Note: View the original document on HAL open archive server: https://amu.hal.science/hal-03408305v1
References: Add references at CitEc
Citations:

Published in Journal of Environmental Economics and Management, 2021, 109, pp.102493. ⟨10.1016/j.jeem.2021.102493⟩

Downloads: (external link)
https://amu.hal.science/hal-03408305v1/document (application/pdf)

Related works:
Journal Article: Externality and common-pool resources: The case of artesian aquifers (2021)
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:hal:journl:hal-03408305

DOI: 10.1016/j.jeem.2021.102493

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().