Naomi Zeitouni

Mitigating negative water quality and quality externalities by joint mangement of adjacent aquifers

Groundwater basins are usually separated into aquifers that are hydrologically interrelated. This interrelation may take the form of water movement from one aquifer to another. When differentials in water quality exist, pumping from one of the aquifers can cause water movement that may be associated with degradation of its quality. A management policy that considers this interrelation may be preferable to an independent management of each aquifer. This paper develops a dynamic optimal control model to evaluate joint versus independent management. The optimal joint pumping management, in which two adjacent aquifers of different water qualities are interrelated, is analyzed and compared to independent aquifer pumping, and the situations where joint management is not required are identified. Policy implications are then derived and discussed. Finally, the theoretical model is applied to a case of interrelated aquifers in southern Israel. The empirical model identifies conditions (interest rate, agricultural fresh water supply rainfall recharge, price of surface water, drinking water quality standards) under which a joint policy is preferable. The empirical results confirm the theoretical ones.

Effects of Coral Reef Attribute Damage on Recreational Welfare

This paper presents the results of an economic valuation of coral reef degradation at Eilat, Israeli Red Sea. We estimate the marginal prices of coral and fish diversity and water visibility at US

Dose-response modeling of recreationally important coral-reef attributes: a review and potential application to the economic valuation of damage

2.60 and US

Models of water market mechanisms and an illustrative application to the Middle East

1.20 per dive, respectively. From the standpoint of recreational diving welfare, the annual social costs of activities contributing to coral reef degradation are approximately US

A Market Solution for the Israeli-Palestinian Water Dispute

2.86 million. To our knowledge, this is the first economic valuation of individual coral reef attributes and the first application of a choice experiment to coral reef valuation.

Using risk management to increase the flexibility of transboundary water conflict resolutions

Abstract.Dose–response modeling has been widely used to document links between anthropogenic stressors and ecosystem attributes, and as a basis in the economic valuation of pollution damage. We review studies on the relation between anthropogenic stress factors and coral-reef attributes valuable in recreation, discuss the components of the economic value of coral reefs, and examine the potential use of dose–response functions in the economic valuation of coral-reef damage.

Water Sharing Through Trade In Markets For Water Rights: An Illustrative Application To The Middle East

Abstract The growing demand by countries in the eastern Mediterranean over the waters of the Jordan and Yarmuk Rivers, and the highly depleted coastal and mountain groundwater reservoirs, raise the need to explore ways and means to ameliorate existing and expected water scarcity. Economists have for some time proposed ways towards more efficient exploitation of existing water supplies, specifically by employing market incentive mechanisms in order to encourage voluntary water sharing among countries and regions. Such trading schemes may involve two or more countries. It can be shown that such schemes — given any initial assignment of property claims to water resources — can often lead to increases in the welfare of the countries concerned. The paper proposes two specific mechanisms for international markets in water claims in the eastern Mediterranean region, in which parties voluntarily engage in such trades, as they would expect to gain real benefits from these transactions. Simulation exercises with real data show that — as is true for any opening of markets to international trade — that all parties in the region might benefit to a greater or lesser degree from auctions of water.

Impacts of Changes in Regional Rainfall-Distribution Patterns on Winter Agriculture in Israel

Abstract The perceived shortage of water within Israel and the Palestinian authority raises the need to explore the ways and means to ameliorate existing and expected water scarcity. This study stresses the need for demand management and market allocation that will shift water from agriculture to other uses. Since the real price of water in this region is too high, water should not serve as input for many of the crops that are currently grown by the local population. The hidden and visible subsidies that are currently supporting the prices of water would be better used to create substituting employment to shift more farmers away from agricultural occupations. Such policy will ease the shortage of water that is created by policies and behavior that were aimed indirectly, to increase the use of water.

Employing Market Mechanisms to Encourage Efficient Use of Water in the Middle East

With the increase in world population and the diminishing water quality and quantity, water scarcity is increasing. As access to water is essential to the prosperity of communities, the threat of conflict over the use of transboundary water is increasing. Surface and groundwater that cross international boundaries present increased challenges to regional stability because hydrologic needs can often be overwhelmed by political considerations. The success of an agreement over water conflicts greatly depends on the flexibility of the agreement in the presence of new risks and challenges. This flexibility may be accomplished through the establishment of formal institutions and/or legislation set up for the purpose of problem solving. These institutions are essential for the maintenance of cooperative interactions over water. This work suggests the use of the risk management method most commonly utilised in the planning and developing of complex industrialised projects to increase the flexibility of transboundary agreements.

Optimal extraction from a renewable groundwater aquifer with stochastic recharge

The growing demand by countries in the eastern Mediterranean over the waters of the Jordan and Yarmuch Rivers, and the highly depleted coastal and mountain groundwater reservoirs, raise the need to explore ways and means to ameliorate existing and expected water scarcity. Economists have for some time proposed ways towards more efficient exploitation of existing water supplies, specifically by employing market incentive mechanisms in order to encourage voluntary water sharing among countries and regions. Such trading schemes may involve two or more countries. It can be shown that such schemes, given any initial assignment of property rights to water resources, can often lead to increases in the welfare of the countries concerned. The paper proposes two specific mechanisms for international markets in water rights in the eastern Mediterranean region, in which parties voluntarily engage in such trades, as they would expect to gain real benefits from these transactions. Simulation exercises with real data show that - as is true for any opening of markets to international trade - that all parties in the region might benefit to a greater or lesser degree from trade in water rights, either from actually using imported water or from the monetary gain from water exports.