I present the economic principles of water allocation and pricing in a schematic water economy representing a wide range of real-world situations. The water policy has inter- and intratemporal components. The former determines extractions from the naturally replenished sources, given the...

The state of water resources and the need for a comprehensive perspective -- The water economy -- Supply costs, demands and benefits -- Optimal water policy -- Water regulation -- Conjunctive use -- Case studies of regulatory interventions -- Economy-wide considerations of water management --...

Groundwater resources (GW) account for nearly 30% of the world's sustainable water supplies. Yet, this resource, which is fraught with externalities, has largely been left unregulated. The economic literature on GW is predominantly of a partial equilibrium type. We analyze GW regulation in a...