Abstract
Abstract This article studies the divergence in the planning and equilibrium solutions for a multicell aquifer with heterogeneity in cell depths. A spatial model is developed that accounts for the lateral movement of water between cells. The optimal steady state of this problem is compared with the competitive equilibrium steady state. Studying the steady state conditions in the two outcomes allows the nature of the spatial externalities to be characterized and reveals the effects of varying cell depths. In a two-cell specification of the model, closed-form expressions are derived for the difference in optimal steady state water table elevations between the two cells. The two-cell model is then applied numerically to quantify the spatial externalities and asymmetry effects in Sheridan County, Kansas, which overlies the Ogallala aquifer. Simulated welfare losses in this model are relatively large and are sensitive to the asymmetry in cell depths.
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 callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
