Abstract
This research develops an optimal control model that incorporates the opportunity for adaptation to resource depletion. In the context of groundwater mining for agricultural production, two traits supplement a conventional intertemporal depletion path: the relative allocation of groundwater among irrigated crops and endogenous switch times describing an intertemporal cropping pattern. Both planning and common property equilibria are derived. Results from an application to the Texas High Plains include: transition away from irrigation of sorghum occurs twice as fast when done optimally, and benefit to groundwater management ranges between $0.36 to $4.16 million as the interest rate varies from five to two percent.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
