Arbeitspapier

Regulating water extraction in a river basin with upstream-downstream communities

This paper proposes a tax mechanism modelled for water extraction in a river system with upstream and downstream farmers. The tax mechanism is based on the regulator's own estimation of aggregate extraction and for that reason the tax addresses the problem of asymmetric information. It is demonstrated that the tax mechanism ensures approximately correct marginal extraction incentives for the individual farmer. Consequently, it is concluded that the tax mechanism proposed here has a practical application.

Language
Englisch

Bibliographic citation
Series: FOI Working Paper ; No. 2011/2

Classification
Wirtschaft
Subject
Water extraction
River system
Tax mechanism
Upstream-downstream users

Event
Geistige Schöpfung
(who)
Graversen, Mette Kildegaard
Event
Veröffentlichung
(who)
University of Copenhagen, Department of Food and Resource Economics (IFRO)
(where)
Copenhagen
(when)
2011

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Graversen, Mette Kildegaard
  • University of Copenhagen, Department of Food and Resource Economics (IFRO)

Time of origin

  • 2011

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