International Decade for Action "Water for Life" 2005-2015rss RSS SubscribeEnglish Español

(The) Full Economic Cost of Groundwater Extraction

(The) Full Economic Cost of Groundwater Extraction
  • World Bank. December 2010
  • The research in this paper constructs an analytical framework for describing the characteristics of economically efficient groundwater management plans, identifying how individual water use decisions by farmers collectively depart from efficient resource use, and examining how policies related to both water and electricity can improve on the efficiency of the status quo. The analysis includes a methodology for calculating the latter externality cost, based on just a few parameters, and a discussion of how electricity pricing could be modified to improve efficiency in both power and water use.
  • Main themes: Agriculture, Cost recovery, Economic impact, Energy, Groundwater, Tariffs, Water allocation, Water management
  • Main target audience: Agriculture sector, Policy makers, Water managers, Water operators
  • Main purpose: Assessment
  • Type of resource: Research study, Working paper
  • Download file (162 KB)
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Published in 2015