EESA07H3 Chapter Notes - Chapter 12, 13: Prior-Appropriation Water Rights, Dynamic Efficiency, Water Metering
13 Dec 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. A balance would be finding a way to manage water both equitably and efficiently. Clarity, economic efficiency, environmental protection, distributional equity. Marginal net benefits (mnb): the net benefits that each user gets from an added increment of consumption. Efficient allocation is when total the marginal 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.
