Article

 

WATER ALLOCATION OF TRANSBOUNDARY RIVER: A MICROECONOMIC OPTIMAL TAX APPLICATION (p.75-90)  [Fichier PDF]
 
by
 
Dimitrios A. GIANNIAS, HELLENIC OPEN UNIVERSITY
 
Keywords : Water allocation, Optimal tax, Externalities
JEL classification : D49, D60, D69, D74, Q25, Q28
 
Abstract
A model is presented that incorporates both water quantity and quality aspects and a market based system is developed to characterize optimum water allocations between two regions or countries. A methodology is developed to compute the optimum tax or subsidy that could support an optimum water quantity and quality allocation in case that the relevant authorities agreed to impose in the marketplace.