Ba. Mccarl et al., Limiting pumping from the Edwards Aquifer: An economic investigation of proposals, water markets, and spring flow guarantees, WATER RES R, 35(4), 1999, pp. 1257-1268
The Edwards Aquifer, near San Antonio, Texas, is an important water source
for both pumping and spring flow, which in turn provides water for recreati
on and habitat for several endangered species. A management authority is ch
arged with aquifer management and is mandated to reduce pumping, facilitate
water markets, protect agricultural rights, and protect the species habita
t. This paper examines the economic dimensions of authority duties. A combi
ned hydrologic-economic model is used in the investigation. The results ind
icate that proposed pumping limits are shown to have large consequences for
agricultural usage and to decrease the welfare of current aquifer pumping
users. However, the spring flow habitat is found to be protected, and the g
ains from that protection would have to exceed pumping user losses in order
for the protection measures to increase regional economic welfare. Agricul
tural guarantees are shown to cause use value differences, indicating the o
pportunity for emergence of an active water market. Fixed quantity pumping
limits are found to be an expensive way of insuring adequate spring flow.