Management of a tributary aquifer

Much work has been done concerning the integration of hydrologic and economic considerations for a nontributary aquifer. Moreover, some fairly sophisticated hydrologic models concerning tributary aquifers have been developed, but to date there has been a paucity of economic analyses concerning tributary aquifers, and most of these analyses have incorporated the hydrologic link between surface water and groundwater only as a secondary phenomenon. We develop an analytical economic model which focuses primarily on this hydrologic link as it relates to efficient plans for water pumping and then examine the allocative efficiency of competitive markets for such water. The efficiency of alternative state management of tributary aquifer water systems is also analyzed.