This paper discusses basic issues in project analysis and shows how these issues can be resolved in a computable general equilibrium (CGE) framework. The role of border prices and intersectoral linkages is explored. The CGE framework is compared to less comprehensive frameworks, including...

The ideal water contract for a heterogeneous population of users is a prioritized right that is fully vested and fully tradable. A set of tradable, prioritized rights contracts will span the same space as the Debreu contingent commodities. Therefore, they lead to a competitive equilibrium that...

This paper explains the economic conception of water - how economists think about water. It consists of two main sections. First, it reviews the economic concept of value, explains how it is measured, and discusses how this has been applied to water in various ways. Then it considers the debate...

The problem addressed by this study is how a large urban water district can best respond to a drought or the prospect of a drought. Specifically, what is the least cost combination of alternatives to meet periodic shortages? A solution to this problem may involve structural approaches (such as...

Water suppliers have been adopting new rate structures to promote conservation. The shift away from rates based on historical average cost toward rates based on marginal cost has been motivated by the desire to send consumers the "right" price signal about the need to conserve drinking water....

The two main objectives of the East Bay Municipal Utility District (EBMUD) water supply management program are to cope with a failure of the aqueducts in the Delta due to earthquake and flood damage and to mitigate periodic shortages. EBMUD emphasizes construction of additional terminal storage,...

The Central and West Coast groundwater basins (“basins” or “Central and West Coast Basins”) are located in southern Los Angeles County. Groundwater produced from these basins provides approximately forty percent of the water supply for residents and businesses in all or parts of 43...