TITLE:
Theory of an Optimal Dynamical Water Resource Management Policy
AUTHORS:
Muhammad Ashfaq Ahmed, Nasreen Nawaz
KEYWORDS:
Water Market, Production Rate, Dynamic Efficiency, Adjustment Path, Equilibrium
JOURNAL NAME:
Journal of Water Resource and Protection,
Vol.15 No.3,
March
21,
2023
ABSTRACT: Water markets even though not perfect and require a lot of effort to establish are considered as a robust tool to address water management issues around the world. However, the existing literature does not provide an optimal water resource management policy. To create a perfect water market, the government needs to identify the potential number of suppliers/producers and consumers of water against various extraction/supply/production rates of water, i.e., to identify a supply and a demand curve for number of suppliers/producers of water against each production rate in economy. This article presents a theory which is practically applicable for an optimal dynamical water resource management policy (JEL H20, H23, H27).