Regulating groundwater use in developing countries: a feasible instrument for public intervention
Research output: Working paper › Research
Standard
Regulating groundwater use in developing countries : a feasible instrument for public intervention. / Hansen, Lars Gårn; Jensen, Frank; Amundsen, Eirik S.
Institute of Food and Resource Economics, University of Copenhagen, 2011.Research output: Working paper › Research
Harvard
APA
Vancouver
Author
Bibtex
}
RIS
TY - UNPB
T1 - Regulating groundwater use in developing countries
T2 - a feasible instrument for public intervention
AU - Hansen, Lars Gårn
AU - Jensen, Frank
AU - Amundsen, Eirik S
PY - 2011
Y1 - 2011
N2 - In many developing countries, groundwater is a common pool resource which is potentially subject to the tragedy of the commons if water extraction is not adequately regulated. However, in these countries, the regulatory infrastructure is often too weak to allow detailed monitoring of individual groundwater extraction. For this reason, classical public intervention instruments, such as consumption fees or tradable quotas, are infeasible. Here we present a theoretical foundation for a new public regulatory instrument that can potentially generate the same efficiency inducing incentives as fees and tradable quotas, but without their information and monitoring requirements. The instrument we propose is a tax based on aggregate extraction, rather than individual extraction measures.
AB - In many developing countries, groundwater is a common pool resource which is potentially subject to the tragedy of the commons if water extraction is not adequately regulated. However, in these countries, the regulatory infrastructure is often too weak to allow detailed monitoring of individual groundwater extraction. For this reason, classical public intervention instruments, such as consumption fees or tradable quotas, are infeasible. Here we present a theoretical foundation for a new public regulatory instrument that can potentially generate the same efficiency inducing incentives as fees and tradable quotas, but without their information and monitoring requirements. The instrument we propose is a tax based on aggregate extraction, rather than individual extraction measures.
M3 - Working paper
T3 - FOI Working Paper
BT - Regulating groundwater use in developing countries
PB - Institute of Food and Resource Economics, University of Copenhagen
ER -
ID: 34409957