Reading List and Course Outline

Robert T. Deacon                                Economics 260A                                            Fall 2007

Natural Resource Economics

http://www.econ.ucsb.edu/~deacon/econ260a.html

 

Time/place:    TTh. 9:30-10:45, North Hall 2212

Office hours:  Tuesday, 3:30-5:00 and by appointment (893-3679, deacon@econ)

Course requirements: one term paper (33%) with class presentation, two in-class presentations of readings with associated writeups (33%) and a take-home exam (34%).

Topics

This course examines the operation of markets for natural resources, including minerals, fossil fuels, forest resources, fish, water, and natural environments. Physical processes determine natural resource abundance and at least a rudimentary representation of these processes is necessary for economic analysis. For this reason the readings often present simple biological models for studying fisheries and forests and incorporate geological concepts in examining minerals and hydrological concepts in examining groundwater. In a sense, this connection with natural process is what sets natural resource economics apart from other fields of the discipline. Ownership rights to natural resources often are not clearly defined. In these cases the interests of some potential resource users will not be reflected in market outcomes and the scramble to acquire these un-owned assets may be wasteful. Finally, the use of natural resources is ultimately linked to the release of waste products into the environment, so there are considerations of environmental degradation. These themes appear at various points in the course.

Textbook

Jon M. Conrad and Colin W. Clark, Natural Resource Economics: Notes and Problems, Cambridge University Press, 1987.

This is a book on modeling methods and spends relatively little time with institutions. The latter topics are in readings from the syllabus and in the following books:

A.C. Fisher, Resource and Environment Economics, Cambridge University Press, 1981.

P.S. Dasgupta and G.M. Heal, Economic Theory and Exhaustible Resources, Cambridge University Press, 1979.

Jon M. Conrad, Resource Economics, Cambridge University Press, 1999.

Nick Hanley, Jason F. Shogren, and Ben White, Environmental Economics in Theory and Practice, Oxford University Press, 1997.

John M. Hartwick and Nancy D. Olewiler, The Economics of Natural Resource Use, 2nd Ed., Addison Wesley 1998.

The first two are classic texts on natural resource economics theory; they treat individual topics in more detail than Conrad and Clark. Selected chapters from both are included on the reading list. Conrad’s Resource Economics is similar to Conrad and Clark, but spends more time discussing resource industries and policies and emphasizes simulations. Hanley et al and Hartwick and Olewiler are advanced undergraduate texts.

Format

1. Early in the quarter I will lecture on some of the basic concepts and methods covered in the textbook and on a few of the more specialized and applied topics. I will announce in class the material to read for the next meeting.

2. Students will each present 2 papers during the term. You should plan on ~30-40 minutes for a presentation, including discussion. A written synopsis evaluating the strength of the paper’s contribution (3-4 pages), similar to a referee report, is required for each 1 week after the presentation. Paper assignments will be decided on October 9 (4th class meeting.) I would like each student to present 1 paper from the list below and 1 from the reading list.

3. Each student is required to complete one term paper during the quarter (~10-15 pages) and to present it in class (~30 minutes).  The term paper should review the literature on a topic of interest to the student. Part of this review should be a set of conclusions or implications for future research. A set of broad topics can be found here, but these are just suggestions. This should be viewed as an opportunity to become familiar with the literature on a topic of interest to you. If you choose a topic of your own, please inform me prior to completing the work. Term papers are due on November 29.

I may go over one or more study problems in class sessions. You may also find it useful practice to work through a set of easy homework problems that I have assigned to undergraduates in the past

List of papers to be presented:

Brander, J.A., and M. Scott Taylor, “The Simple Economics of Easter Island: A Ricardo-Malthus Model of Renewable Resource Use,” AER, 88(1) March 1998, 119-138.

Brock, William and Anastasios Xepapadeas, "Valuing Biodiversity from an Economic Perspective: A Unified Economic, Ecological, and Genetic Approach," AER 93:5 (December 2003.) 1597-1614.

E. H. Bulte, R. Damania and R. Lopez, “On the gains of committing to inefficiency: Corruption, deforestation and low land productivity in Latin America”, JEEM, 2007 (forthcoming).

Copeland, Brian R., and M. Scott Taylor, “Trade, Tragedy and the Commons,” Working paper, Department of Economics, University of Calgary, 2004.

Costello, Christopher J., and Daniel Kaffine, “Natural resource use with limited-tenure property rights,”, UCSB, Bren School of Environmental Science and Management, 2007.

Smith, Martin D., and James E. Wilen, “Economic impacts of marine reserves: the importance of spatial behavior,” JEEM 46(2) (September 2003) 183-206.

Taylor, M. Scott,  “Buffalo Hunt: International trade and the virtual extinction of the North American Bison,” NBER Working Paper 12969, 2007.

Zivin, J., Brent M. Hueth, and D. Zilberman, “Managing a Multiple-Use Resource: The Case of Feral Pig Management in California Rangeland,” JEEM Vol 35 (2000) 189-204.

Journal title abbreviations

AER  American Economic Review

AJAE  American Journal of Agric. Econ.

CJE  Canadian Journal of Economics

EJ  Economic Journal

EI  Economic Inquiry

ERE  Environ and Resource Econ

JET  Journal of Economic Theo

JFRBC  Jour. Fish. Res. Bd. Canada

JEL  Journal of Economic Litearture

JLE   Journal of Law and Economics

JDE Journal of Development Economics

JPE  Journal of Political Economy

JLEO  Jour. of Law, Econ. and Organiz

JEP  J of Econ Perspectives

JPubE  J of Public Economics

JUE  J of Urban Economics

JEEM  Jour. of Environ. Econ. and Mgt

LE  Land Economics

MRE  Marine Resource Economics

NRM  Natural Resource Modelin

QJE  Quarterly Journal of Economic

REE  Resource and Energy Economics

REStat.  Review of Econ and Statist.

REStud.  Review of Economic Studies

RJE  Rand J of Economics

SEJ  Southern Economic Journal

SJE  Scandinavian J of Economics

WRR Water Resources Research

YJR  Yale Journal on Regulation

 

 

Readings marked * should be read; others are optional.

 

 

 

I.      INTRODUCTION

A.  Policy Issues and Scope of the Natural Resources Field

Introd. Slides

*  Hartwick and Olewiler, Chap. 1.

   Deacon. R. T., et al, “Research Trends and Opportunities in Environmental and Natural Resource Economics,” ERE, 11(3-4) 1998, 383-97.

    Krutilla, J., "Conservation Reconsidered", AER, Sept. 1967.

    Dasgupta and Heal, Chap. 1.

B. Natural Resource Scarcity

*  Fisher, Chapter 4.

*  Krautkraemer, Jeffrey A., “Natural Resource Scarcity,” JEL, 36(4) December 1998, 2065-2107.

    Hartwick and Olewiler, Chap. 2.

Halvorsen, Robert, and Tim Smith, “On Measuring Natural Resource Scarcity,” JPE 92(5) (1984) 954-963.

Barnett, H., and C. Morse, Scarcity and Growth: The Economics of Natural Resource Availability, Johns Hopkins University Press, 1962 (esp. Chaps. 1, 3, 8, 9, 12). Segments of this are in Fisher, Chap. 4.

    Devarajan, S., and A.C. Fisher, "Exploration and Scarcity", JPE, Vol. 90, no.2 (1982) 1279-1280.

    G.M. Brown Jr. and B.C. Field, "Implications of Alternative Measures of Natural Resource Scarcity", JPE, 86 (2), April 1978.

    Nordhaus, W.D., "Resources as a Constraint on Economic Growth", AER, May 1974.

 

II. GENERAL CONCEPTS AND METHODS

A. Welfare Economics, Property Rights, and Externalities

    (You should be familiar with most of this material from other courses. I will go over these topics only briefly in class.)

    Dasgupta and Heal, Chapter 2, Chapter 3.

    Arrow, K.J., "The Organization of Economic Activity: Issues Pertinent to the Choice of Market Versus Non Market Allocation", in Haveman and Margolis, eds., Public Expenditures and Policy Analysis. Chicago: Markham, 1970, pp. 59-73.

    Brooks, R., M. Murray, S. Salant, and J. Weise, “When is the Standard Analysis of Common Property Extraction Under Free Access Correct? A Game Theoretic Justification for Non-Game-Theoretic Analyses.” JPE Vol. 107 no. 4 (August 1999) 843-858.

B. Analytical Methods

*  Conrad and Clark, pp. 13-40, 176-197, 209-214.

* Boileau, Martin, “A Child’s Guide to Optimal Control Theory,” mimeo, University of Colorado.

    Dasgupta and Heal, Chapter 4.

    C.W. Clark, Mathematical Bioeconomics,  Wiley and Sons, 1976, Chapter 4.

    Mesterton-Gibbons, M. “Game Theoretic Resource Modeling,” NRM, 7, 1993, pp. 93-147.

C. Applications

*  Zivin, J., Brent M. Hueth, and D. Zilberman, “Managing a Multiple-Use Resource: The Case of Feral Pig Management in California Rangeland,” JEEM Vol 35 (2000) 189-204.

    Deacon, R. T., "Incomplete Ownership, Rent Dissipation, and the Return to Related Investments", EI, January 1995.

 

III. NONRENEWABLE RESOURCES

A. Basic Hotelling Model: Competition

*  Conrad and Clark, pp. 117-145.

    Dasgupta and Heal, Chap. 6.

    Hartwick and Olewiler, Chap. 8.

    Fisher, Chapter 2, pp. 10-37.

*  Pindyck, R.S., "The Optimal Exploration and Production of Nonrenewable Resources," JPE, 1978.

Farzin, Y.,  "The Effect of the Discount Rate on Depletion of Exhaustible Resources," JPE 92, 5 (1984) 941-51.

    Livernois, J.R., and R.S. Uhler, "Extraction Costs-and the Economics of Nonrenewable Resources", JPE, Vol. 95, no. 1, (1987) 195-203.

B. Basic Hotelling Model: Imperfect Competition

*  Hartwick and Olewiler, Chap. 9.

*  Dasgupta and Heal, Ch. 11. .

C. Imperfect Competition: Empirical Studies

   Pindyck, R.S., "Gains to Producers from the Cartelization of Exhaustible Resources," REStat., 1978, pp. 238-251.

    Salant, Steven W.,"Exhaustible Resources and Industrial Structure: A Nash-Cournot Approach to the World Oil Market," JPE Oct. 1976.

D. Taxation of Nonrenewable Resources

    Dasgupta and Heal, Ch. 12.

    Deacon, R.T., "Taxation, Depletion, and Welfare: A Simulation Model of the U.S. Petroleum     Resource", JEEM, 1993.

    Heaps, T., "The Taxation of Nonreplenishable Natural Resources Revisited", JEEM, 1985.

    Krautkraemer, J. A., "Taxation, Ore Quality Selection, and the Depletion of a Heterogeneous Deposit of a Nonrenewable Resource", JEEM, 18 (1990) 120-135.

    Kolstad, C. D., and F. A. Wolak, Jr. "Competition in Interregional Taxation: The Case of Western Coal," JPE, 19 (3) 1983.

E. Tests of the Basic Hotelling Model

*  Miller, M.H., and C.W. Upton, "A Test of the Hotelling Valuation Principle," JPE, 93(1) Feb. 1985.

    Farrow, S., "Testing the Efficiency of Extraction from a Stock Resource," JPE, 1985.

    Black, G., and J. LaFrance, "Is Hotelling's Rule Relevant to Domestic Oil Production?" JEEM, 36(2) September 1998, 149-69.

F. Risk and the Production of Nonrenewable Resources

Crabbe, P.J., "Sources and Types of Uncertainty, Information and Control in Economic Models of Non-Renewable Resources", Optimal Control Theory and Economic Analysis, 1983.

*  Bohn, H., and R. T. Deacon, "Ownership Risk, Investment, and the Use of Natural Resources," AER Vol 90 no. 3 (June 2000) 526-549.

G. What Motivates OPEC Behavior?

*  Griffin, James M., “OPEC Behavior: A Test of Alternative Hypotheses,” AER 75(December 1985) 954-963.

* Griffin, James M., and W. Xiong, "The Incentive to Cheat: An Empirical Analysis of OPEC," JLE XL (October 1997) 289-316.

    Gately, Dermot, "A Ten-Year Retrospective: OPEC and the World Oil Market, JEL XXII (September 1984) 1100-1114.

    Hnyilicza, Esteban and Robert S. Pindyck, "Pricing Policies for a Two-Part Exhaustible Resource Cartel: The Case of OPEC," EER 8 (1976) 139-154.

 

IV. FOREST RESOURCES

A. Basic Models and Results

*  Conrad and Clark, pp. 96-97.

*  Johansson , P. O., and K. G. Lofgren, The Economics of Forestry and Natural Resources, Chap. 4, Basil Blackwell, 1997. (Chapters 5 and 7 are also suggested.)

    Deacon, R.T., "The Simple Analytics of Forest Economics" in R.T. Deacon and M.B. Johnson (eds.), Forestlands, Public and Private, Ballinger Publishing Co., 1984.

    Bowes , M.D., and J.V. Krutilla, "Chapter 12: Multiple Use Management of Public Forestlands" in A.V. Kneese and J.L. Sweeney, Handbook of Natural Resource and Energy Economics, Vol.II, North-Holland, 1985.

B. Externalities, Ecological Considerations, and Forest Management

*  Hartman, R., "The Harvesting Decision When a Standing Forest Has Value." EI, March 1976.

*  Songhen, B., and R. Mendelsohn, “Valuing the Impact of Large-Scale Ecological Change in a Market: The Effect of Climate Change on U.S. Timber,” AER 88(4) (September 1998) 686-710.

Nalle, D. J., et al, “Modeling joint production of wildlife and timber.” JEEM 48 (2004) 997-1017.

    Erickson, Jon D., D. Chapman, T.J. Fahey, and M.J. Christ, “Nonrenewability in Forest Rotations: Implications for Economic and Ecological Sustainability,” EE 31(1) 91-106 (1999).

    Stavins , R.N,. and A.B. Jaffe, "Unintended Impacts of Public Investments on Private   Decisions: The Depletion of Forested Wetlands", AER, June 1990.

C. Management of Publicly Owned Forests

    Leal, D. R. , "Turning a Profit on Public Forests," PERC Policy Series: PS-4, September 1995, Bozeman Montana.

    Repetto, R.,  "8. Subsidized Timber Sales from National Forest Lands in the United States", in R. Repetto and M. Gillis, eds., Public Policies and the Misuse of Forest Resources, Cambridge Univ. Press, 1988.

    Hyde, W., "Timber Management in the Rockies: Efficiency and Management Options", LE Vol. 57, No.4, (1981) 630-637.

D. Supply of Forest Outputs

*  Ferreira, Susana, and Jeffrey R. Vincent, “Corruption and Natural Resource Depletion”, Working paper, Graduate School of International Relations and Pacific Studies, UC San Diego, July 2005.

    Sedjo, Roger, and Kenneth S. Lyon, The Long Term Adequacy of World Timber Supply, Washington, DC: Resources for the Future, 1990.

Sedjo, Roger A., and Daniel Botkin, 1997. "Using Forest Plantations to Spare Natural Forests." Environment Vol. 39, no. 10 (December), pp. 14-20.

    Sedjo, Roger, “Biotechnology’s Potential Contribution to Global Wood Supply and Forest Conservation,” Working Paper, Resources for the Future, 2001.

 

V. DEFORESTATION, BIODIVERSITY AND RELATED TOPICS

A. Valuing Biodiversity for Pharmaceutical Use

*  R. D. Simpson, R. A. Sedjo, and J. W. Reid, "Valuing Biodiversity for use in Pharmaceutical Research", JPE, 104(1) 1996, 163-185.

    Gordon C. Rausser and Arthur A. Small, “Valuing Reserch Leads: Bioprospecting and the Conservation of Genetic Resources,” JPE Vol. 108, no. 1 ((2000) 173-205.

Costello, Christopher and Michael Ward, "Search, Bioprospecting, and Biodiversity Conservation: Comment", UCSB, Bren School of Environmental Science and Management, (September 2003.)

B. Deforestation

*  R. Lopez, "Environmental Externalities in Traditional Agriculture and the Impact of Trade Liberalization: The Case of Ghana," JDE 53 (1997) 17-39.

*  Alston, Lee J., Gary D. Libecap and Bernardo Mueller, “Land Reform Policies, the Sources of Violent Conflict, and Implications for Deforestation in the Brazilian Amazon”. JEEM Vol. 39 (2000) 162-188.

Deacon, R. T., "Deforestation and Ownership: Evidence from Historical Accounts and Contemporary Data", LE, November 1999.

E. H. Bulte, R. Damania and R. Lopez, “On the gains of committing to inefficiency: Corruption, deforestation and low land productivity in Latin America”, JEEM, 2007 (forthcoming).

C. Species Extinction and Preservation

*  Weitzman, M. L., “The Noah’s Ark Problem.” Econometrica Vol. 66 No. 6 (Nov. 1998) 1279-1298.

*  Kremer, M., and C. Morcom, “Elephants,” AER Vol. 90 no. 1 (March 2000) 212-234.

    Bulte, Erwin H., R. D. Horan, and J. F. Shogren, "Elephants: Comment," AER Vol. 93 no. 4 (September 2003) 1437-1445.

    Kremer, M., and C. Morcom, “Elephants: Reply” AER Vol. 93 no. 4 (September 2003) 1446-1448.

*  Busch, Jonah, 2007. “A Game Theoretic Analysis of Transboundary Conservation Areas” UCSB Bren School of Environmental Science and Management, Ecological Economics, forthcoming.

    Khanna, J., and Jon Harford, "The Ivory Trade Ban: Is It Effective?" EE 19 (1996) 147-155.

*  Montgomery, C., G. M. Brown, Jr., and D. M. Adams, "The Marginal Cost of Species Preservation: The Northern Spotted Owl", JEEM 26 (1994), pp. 111–128.

Montgomery, C., Pollack, Robert A. K. Freemark, and D. White, “Pricing Biodiversity.” JEEM 38(1) (July 1999) 1-19.

D. Preserving Species: The U.S. Endangered Species Act

*  Brown, Gardner M., and Jason F. Shogren, "Economics of the Endangered Species Act," JEP Vol. 12(3) (Summer 1998)     3-20.

*   Polasky, Stephen, and Holly Doremus, "When the Truth Hurts: Endangered Species Policy on Private Land with Imperfect      Information," JEEM Vol 35 (1998) 22-47.

*   Metrick, A., and M. L. Weitzman, "Patterns of Behavior in Endangered Species Preservation." LE, 72(1) Feb. 1996, 1-16.

E. Measuring and Valuing Biodiversity

*  Solow, A., S. Polasky, and J. Broadus, "On the Measurement of Biological Diversity," JEEM Vol. 24 (1) 1993, 60-69.

    Polasky, Stephen, and A. R. Solow, “On the Value of a Collection of Species," JEEM 29(3) (November 1995) 298-303.

*  Brock, William and Anastasios Xepapadeas, "Valuing Biodiversity from an Economic Perspective: A Unified Economic, Ecological, and Genetic Approach," AER 93:5 (December 2003.) 1597-1614.

*  Tilman, David, S. Polasky and C. Lehman, "Diversity, productivity and temporal stability in the economies of humans and nature," JEEM 49 (2005) 405-426.

Weitzman, M. L., "On Diversity," QJE," May 1992, 63-405.

    Weitzman, M. L., "What to Preserve? An Application of Diversity Theory to Crane Conservation." QJE," May 1993.

 

VI. FISHERIES AND OTHER RENEWABLE, UNOWNED SPECIES

A. Fisheries: Basic Models and Results

*  Conrad and Clark, pp. 62-96.

    Brown, Gardner M., Jr., “Renewable Natural Resource Use Without Markets,” JEL Vol 38 (December 2000) 875-914.

    Hartwick and Olewiler, Chaps. 4, 11.

Dasgupta and Heal, Ch. 5.

Weitzman, Martin, “Landing fees vs. harvest quotas with uncertain fish stocks,” JEEM 43(2) (2002) 325-348.

    Fisher, Chapter 3.

    C.W. Clark, Mathematical Bioeconomics, John Wiley and Sons, 1976, Chapters 1, 2, 7, 8, 9.

B. Fisheries: Alternative Approaches to Stock Dynamics

    Hannesson, R., "Fishery Dynamics: A North Atlantic Cod Fishery", CJE, May 1975.

    Deacon , R.T., "An Empirical Model of Fishery Dynamics", JEEM, Vol. 16, 1989.

    Townsend , R.E., "A Critique of Models of the American Lobster Fishery", JEEM, Vol. 13 (1986) 277-291.

    Conrad , J.M., "Management of a Multiple Cohort Fishery: The Hard Clam in Great South Bay", AJAE, 1982, pp. 463-474.

    Stollery, K., "A Short-Run Model of Capital Stuffing in the Pacific Halibut Fishery", MRE, Vol. 3, No. 2, 1986, pp. 137-153.

C. Fisheries: Policy Analysis

*  Wilen, J. E., “Renewable Resource Economists and Policy: What Differences Have We Made?” JEEM, 39(2000) 306-327.

*  Homans, F. R., and J. E. Wilen, "A Model of Regulated Open Access Resource Use," JEEM, 32 (1) (1997) 1-22.

    Singh, R., Q. Weninger, and M. Doyle, “Fisheries management with stock growth uncertainty and costly capital adjustment.” JEEM 52(2006) 582-599.

    Hartwick and Olewiler, Chap. 5.

G.R. Munro and A.D. Scott, "The Economics of Fisheries Management", in A.V. Kneese and J.L. Sweeney, Handbook of Natural Resource and Energy Economics, Vol.II, North-Holland, 1985.

    J.F. Wilen, "Fisherman Behavior and the Design of Efficient Fisheries Regulation Programs", JFRCB, 1979.

(There are several classic books and articles on fisheries management and policy by Crutchfield, Christy,. Scott,Pontecorvo, Gordon and others. I can make these available to you if you wish to see them.)

D. Fisheries: Spatial Analysis and Marine Reserves

*  Sanchirico, J.,  and James Wilen, “Bioeconomics of Spatial Exploitation in a Patchy Environment,“ JEEM 37(2) March, 1999, 129-151.

*  Sanchirico, James N. and James E. Wilen, “A Bioeconomic Model of Marine Reserve Creation”, JEEM, 42(3) (November 2001) 257-276. 

*  Smith, Martin D., and James E. Wilen, “Economic impacts of marine reserves: the importance of spatial behavior,” JEEM 46(2) (September 2003) 183-206.

Costello, Chris, and Michael B. Ward, “An economic free lunch from marine reserves?” Mimeo, Bren School, UCSB, 2004.

E. Free Access, Over Exploitation, and Extinction

*  Brander, J.A., and M. Scott Taylor, “The Simple Economics of Easter Island: A Ricardo-Malthus Model of Renewable Resource Use,” AER, 88(1) March 1998, 119-138.

 

VII. RESOURCES, INSTITUTIONS, AND INSTITUTIONAL CHANGE

A. The ‘Natural Resource Curse’

*  Sachs, J. D. and A. M. Warner. “The curse of natural resources” European Economic Review 45 (2001) 827-38. 

Sala –i-Martin, Xavier, and Arvind Subramanian, 2003. “Addressing the Natural Resource Curse: An Illustration from Nigeria,” Cambridge Mass., National Bureau of Economic Research, Working Paper 9804.

Torvick, R. 2002 “Natural Resources, Rent Seeking and Welfare” Journal of Development Economics, 67, 455-70.

B. Evolution of Property Rights and Natural Resource Use

*  Copeland, Brian R., and M. Scott Taylor, “Trade, Tragedy and the Commons,” Working paper, Department of Economics, University of Calgary, 2004.

Libecap, Gary D., and James L. Smith, “The Economic Evolution of Petroleum Property Rights in the United States,” J. Legal Studies, XXXI (June 2002) S589-S608.

    Libecap, Gary D., and S. Wiggins, “Contractual Responses to the Common Pool: Prorationing of Crude Oil Production,” AER 87 (1984).

DeMeza, D.,  and J. R. Gould, "The Social Efficiency of Private Decisions to Enforce Property Rights" JPE, Vol. 100 (1992) 561-580.

C. Informal Management of Common Property Resources

Otsuka, K., A. Quisumbing, E. Payongayong, and J. Aidoo, 2003. “Land tenure and the management of land and trees: The case of customary land tenure areas of Ghana.” Environment and Development Economics, 8(1) (February 20003) 77-105.

    Acheson, James M.,  The Lobster Gangs of Maine. Hanover: University Press of New England, 1988.

 

VIII. WATER RESOURCES

A. General Analysis

*   Boggess, W., R. Lacewell, and David Zilberman, "Economics of Water Use in Agriculture," in G. A. Carlson, D. Zilberman, and J. A. Miranowski, Agricultural and Environmental Resource Economics, New York: Oxford University Press, 1993.

    Burness, H.S., and J.P. Quirk, "Appropriative Water Rights and the Efficient Allocation of Resources," AER, March 1979.

    Burness, H.S., and J.P. Quirk, "Economic Aspects of Appropriative Water Rights," JEEM, Vol. 7, No. 4, 1980, pp. 372-388.

B. Managing Groundwater

*  Conrad and Clark, pp. 194-197.

*  Gisser, M. and D. A. Sanchez, "Competition Versus Optimal Control in Groundwater Pumping," WRR Vol. 16 (4) August 1980.

*  Brozovic, Nicholas, David L. Sunding and David Zilberman, “Managing Groundwater with Spatially Variable Externalities,” Working paper, Department of Agricultural and Resource Economics, UC Berkeley, 2005.

     Koundouri, Phoebe, 2003. “The Potential for Groundwater Management: Gisser-Sanchez Effect Reconsidered,” WRR Vol. 40 WO6S16.

    Knapp, K. C., and Olson, L.J., "The Economics of Conjunctive Groundwater Management with Stochastic Surface Supplies, JEEM 28, 1995, 340-356.

     Burness, H.S., and T. C. Brill, 2001. “The Role for Policy in Common Pool Groundwater Use.” REE, 23 19-40.

Provencher, B, and O Burt, "The Externalities Associated with the Common Property Exploitation of Groundwater," JEEM Vol. 24 (2) March 1993, 139-159.

*   Provencher, B., and O. Burt, “A Private Property Rights Regime for the Commons: The Case for Groundwater,” AJAE 1994, 875-888.

     Provencher, B., “A Private Property Rights Regime to Replenish a Groundwater Aquifer,” LE Vol 69(4) (November 1993) 325-340.