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1、JournalofEnvironmentalEconomicsandManagement44,93–105(2002)doi:10.1006/jeem.2001.1197GroundwaterManagementWhenWaterQualityIsEndogenousCatarinaRoseta-Palma1DepartmentofEconomics(DEGEI),UniversidadedeAveiro,CampusUniversitariodeSantiago,3810-193Aveiro,Portugal´E-m
2、ail:crpalma@egi.ua.ptReceivedJanuary5,2000;revisedJuly31,2000;publishedonlineOctober23,2001Thispaperbringsqualityconsiderationsintoadeterministicmodelofresourcemanagement.Itwouldbenaturaltosupposethatoptimalmanagementyieldsalargeraquiferofbetterqualitythanwhatpr
3、ivateagentsachieve.However,thispapershowsthatinterventionmaylowerquantitywhileimprovingqualityorviceversa.Itisalsoshownthat,despitetheexternalcostsassociatedwithcontaminantdischarges,thestationarylevelofdischargeschosenbytheusersofgroundwatermaybehigherorlowerth
4、antheefficientlevel,aslongaswaterqualityishigherintheefficientsolution.ã2001ElsevierScience(USA)1.INTRODUCTIONTherearetwowell-developedbranchesofeconomicliteraturethatfocusongroundwater:oneusesdynamicoptimizationmodelssimilartothoseintypicalrenewableresourceproble
5、mstoanalyzepumpingpatternsandanotherdealswithaquifercontaminationasanexternalityimposedbyproductiveactivitieswhichareotherwiseunrelatedtothewatersupply.However,thevalueofwaterasaresourcedependsasmuchonthequantityavailableasonitsquality,sothatbothaspectsshouldbec
6、onsideredsimultaneouslyforadequatemanagement.Thewater-resourceliteratureemphasizesthecomparisonbetweenoptimalpump-ingpathsandcommonpropertyoutcomes,especiallysinceearlyempiricalstudies(startingwithGisserandSanchez[6])raisedthepossibilityofrelativelysmallwel-fare
7、differencesbetweenthetwocases.ThestudyofProvencher[10]containsasurveyofthemodelsusedinadeterministicsetting,anditbrieflyanalyzesthevalueofgroundwaterasabufferinthecaseofstochasticsurfacewaterinflows,aswellaspolicyalternativestoachieveadequategroundwateruse.Theothe
8、rimportantbulkofliteratureanalyzesaquifercontaminationinapollu-tioncontrolperspective,givingspecialemphasistononpointpollution,namelywhenitiscausedbyirrigatedagricult
