EESA07H3 Lecture Notes - Lecture 10: Prior-Appropriation Water Rights, Dynamic Efficiency, Price Elasticity Of Demand
30 Nov 2016
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Eesa07h3 f: lecture 10 - economics of water management and water conflicts. (november 28th, 2016) Define marginal net benefits and dynamic efficiency. Explain the difference between free market and market price. Distinguish between riparian and prior appropriation doctrine. Explain water rights and allocation in the murray-darling basin. Define the pros and cons of water privatization. Give some examples of water conflicts and cooperative management. From an economic point of view we need to allocate scarce resources efficiently so that total net benefits are maximized. Marginal net benefits (mnb): the net benefits that each user gets are equal. Dynamic efficiency: consuming the resource at different points in time. Groundwater is extracted based on its renewal rates. Free market: the resource is sold to the users with the highest total net benefits. Market price: it is a reflection of the balance between supply and demand. Riparian doctrine: water is shared among those who own land bordering the river.
