Economic Analysis of Groundwater Management for Agriculture and Environment

Globally, groundwater has been depleting at an alarming rate due to over-extraction by agriculture and to reduced rainfall. This is accelerating the degradation of many valuable groundwater-dependent ecosystems. To limit negative environmental impacts, water management authorities are trying to reduce water allocations to irrigators, thereby imposing extra costs on them. As a result, water restriction plans meet with opposition, which delay their implementation. By providing a comprehensive economic analysis of alternative groundwater management strategies , this thesis aims to identify a way forward that minimizes political opposition and reduces the economic burden to agricultural users, while satisfying environmental water requirements.