On the Economics of Water Allocation and Pricing

Posted: 16 Sep 2011

See all articles by Yacov Tsur

Yacov Tsur

Hebrew University of Jerusalem

Multiple version iconThere are 2 versions of this paper

Date Written: October 2009

Abstract

I present the economic principles of water allocation and pricing in a schematic water economy representing a wide range of real-world situations. The water policy has inter- and intratemporal components. The former determines extractions from the naturally replenished sources, given the stochastic nature of recharge processes. The latter is concerned mainly with the allocation of the extracted and produced water among the end users. The optimal water prices associated with the intratemporal allocation task are derived. Implementation of the optimal policy is discussed.

Suggested Citation

Tsur, Yacov, On the Economics of Water Allocation and Pricing (October 2009). Annual Review of Resource Economics, Vol. 1, Issue 1, pp. 513-536, 2009, Available at SSRN: https://ssrn.com/abstract=1928367 or http://dx.doi.org/10.1146/annurev.resource.050708.144256

Yacov Tsur (Contact Author)

Hebrew University of Jerusalem ( email )

POB 12
Rehovot, 7610001
Israel

HOME PAGE: http://https://economics.agri.huji.ac.il/yacovtsur

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