A tax scheme is developed that will create an incentive among users to conserve groundwater and reduce the external diseconomies that pumping produces. Quotas are established for wells by using an agricultural management model. If a user pumps more than the quota established for his well, he may be assessed a tax; if a user pumps less than his quota, he may be entitled to a rebate. However, taxes are collected and redistributed in such a way that zero taxes are accumulated from year to year.
ASJC Scopus subject areas
- Water Science and Technology