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1 results

  • Chapter 7 - Case Studies of Regulatory Interventions

  • Ariel Dinar, University of California, Riverside, Yacov Tsur, Hebrew University of Jerusalem
  • Book:
    The Economics of Water Resources
    Published online:
    21 April 2021
    Print publication:
    15 April 2021, pp 133-164

  • Summary

    The chapter presents case studies from Mexico and Spain of policy interventions that regulate groundwater extraction and use. The cases involve pricing, quotas, and removal of subsidies aimed at reducing negative externalities associated with groundwater over-pumping. The examples demonstrate the use of different policy instruments and their effects on the behavior of groundwater users in addressing negative externalities. The example from Mexico shows how a subsidy of electricity for pumping groundwater leads to perverse effects resulting in depletion of the aquifer. The example from Spain shows the negative effects of unregulated groundwater extracted for irrigation purposes on groundwater-dependent wetlands that contribute to ecosystem services.