Current Issues in the Economics of Water Resource Management

Transcription

1 Current Issues in the Economics of Water Resource Management

2 Economy & Environment VOLUME 23 Scientific Advisory Board Scott Barrett, School of Advanced International Studies, Johns Hopkins University, Washington DC, U.S.A. Klaus Conrad, University of Mannheim, Mannheim, Germany David James, Ecoservices Pty. Ltd., Whale Beach, New South Wales, Australia Bengt J. Kristrom, University of Umea, Sweden Raymond Prince, Congressional Budget Office, U.S. Congress, Washington DC, U.S.A. Domenico Siniscalco, ENI-Enrico Mattei, Milano, Italy / University of Torino, Italy The titles published in this series are listed at the end of this volume.

3 Current Issues in the Economics of Water Resource Management Theory, Applications and Policies Edited by Panos Pashardes Professor of Economics, Department of Economics, University of Cyprus Timothy Swanson Professor of Law & Economics, University College London, United Kingdom and Anastasios Xepapadeas Professor of Economics Department of Economics, University of Crete " ~. Springer -Science+ Business Media, B. V.

4 A C.I.P. Catalogue record for this book is available from the Library of Congress. Printed on acid-free paper All Rights Reserved ISBN ISBN (ebook) DOI / Springer Science+Business Media Dordrecht Originally published by Kluwer Academic Publishers in Softcover reprint of the hardcover 1 st edition 2002 No part of the material protected by this copyright notice may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without written permission from the copyright owner.

5 Table of Contents Acknow ledgements List of Contributors Vll ix Part 1: Introduction Current Issues in the Economics of Water Resource Management: Introduction Panos Pashardes, Timothy Swanson and Anastasios Xepapadeas 3 Part 2: Demand for Water 2.1. RESIDENTIAL DEMAND FOR WATER Estimating Water Demand under Increasing-Block Tariffs Using Aggregate Data and Proportions of Users per Block R. Mart(nez-Espineira 27 Long-Run Study of Residential Water Consumption Ciline Nauges and Alban Thomas IRRIGATION WATER DEMAND Hedonic Price Analysis and Selectivity Bias: Water Salinity and Demand for Land Phoebe Koundouri and Parws Pashardes 69 Part 3: Water Efficiency 3.1. MEASUREMENT OF WATER EFFICIENCY Measuring Irrigation Water Efficiency with a Stochastic Production Frontier: An Application to Greek Out-of-Season Vegetable Cultivation G. Karagiannis, V. Tzouvelekas and A. Xepapadeas 85 v

6 vi TABLE OF CONTENTS 3.2. EFFICIENT USE AND MANAGEMENT OF WATER Strategic Behavior and Efficiency in the Common Property Extraction of Groundwater Santiago J. Rubio and Begoiia Casino 105 Demand-Side Technology Standards under Inefficient Pricing Regimes: Are They Effective Water Conservation Tools in the Long-Run? Christopher Timmins 123 Part 4: Water Management Policies 4.1. WATER AS MULTIFACETED RESOURCE - HORIZONTAL MANAGEMENT CONSIDERATIONS Joint Quantity/Quality Management of Groundwater Catarina Roseta Palma 151 Missing Markets and Redundant Reservoirs: Dams as a Consequence of Inefficient Groundwater Management Policies Ben Groom and Tim Swanson WATER AS AN INDUSTRIAL MANAGEMENT PROBLEM VERTICAL CONSIDERATIONS Regulation of Public Utilities under Asymmetric Information: The Case of Municipal Water Supply in France Serge Garcia and Alban Thomas WATER POLICY AND WATER PRACTICE - SECOND BEST Policy Instruments for Groundwater Management for Agriculture and Nature in the Netherlands Petra J.G.J. Hellegers and Ekko C. van Ierland 221

7 Acknowledgements We would like to thank the Planning Bureau, Government of Cyprus and the European Commission DG xn for financially supporting the research project. For sponsorship of the Symposium on 'Water Resource Management - Efficiency, Equity and Policy' that took place in Nicosia, September 22-24, 2000, we would like to thank the Cyprus Ministry of Agriculture, Natural Resources and the Environment, European Commission, DG xn, Joannou & Paraskevaides Ltd, Caramontanis Desalination Plants Ltd and George P. Zachariades Ltd. For hosting the Symposium we would like to thank the University of Cyprus, and for secretarial assistance Angela Shekersavva. Panos Pashardes Timothy Swanson Anastasios Xepapadeas Vll

8 List of Contributors Bontemps, c., INRA, Economie et Sociologie Rurales, Chemin de Borde Rouge, B.P. 27,31326 Castanet Tolosan Cedex, France Casino, B., Department of Economic Analysis, University of Valencia, Avda. de los Naranjos, Edificio Departamental Oriental, Valencia, Spain Couture, S., INRA, Economie et Sociologie Rurales, Chemin de Borde Rouge, B.P. 27, Castanet Tolosan Cedex, France Garcia, S., CIRANO, 2020 University, 24e etage, Bureau 2406, Montreal, Quebec, Canada H3A 2A5 Groom, B., Department of Economics, University College London, Gower Street, London WCIE 6BT, U.K. Hellegers, P.1.G.1., Agricultural Economics Research Institute (LEI), P.O. Box 29703,2502 LS The Hague, The Netherlands Karagiannis, G., Department of Economics, University of Ioannina, Ioannina, Greece Koundouri, P., Department of Economics, School of Business, The University of Reading, Reading RG6 6AA, U.K.; and Department of Economics & CSERGElEconomics, University College London, Gower Street, London WC IE 6BT, U.K. Martfnez-Espifieira, R., Department of Economics, St. Francis Xavier University, P.O. Box 5000, Antigonish, Nova Scotia, Canada B2G 2W5 Nauges, C., LEERNA-INRA, Manufacture des Tabacs, 21, Allee de Brienne, Toulouse, France Pashardes, P., Department of Economics, University of Cyprus, P.O. Box 20537, 1678 Nicosia, Cyprus Roseta Palma, C., DEGEI, University of Aveiro, Campus de Santiago, A veiro, Portugal Rubio, S.1., Department of Economic Analysis, University of Valencia, Avda. de los Naranjos, Edificio Departamental Oriental, Valencia, Spain Swanson, T., Department of Economics and Faculty of Laws, University College ix

9 x LIST OF CONTRIBUTORS London, Gower Street, London WCIE 6BT, U.K. Thomas, A., LEERNA-INRA, Manufacture des Tabacs, 21, Allee de Brienne, Toulouse, France Timmins, c., Department of Economics, Yale University, P.O. Box , New Haven, CT , U.S.A. Tzouve1ekas, v., Department of Economics, University of Crete, Rethymnon, Crete, Greece Van Ierland, E.C., Environmental Economics and Natural Resources Group, Wageningen University, P.O. Box 8130, 6700 EW Wageningen, The Netherlands Xepapadeas, A., Department of Economics, University of Crete, Rethymnon, Crete, Greece