tag:blogger.com,1999:blog-6309635188081717685.post2659805740147949622..comments2024-02-10T03:25:27.955-06:00Comments on Wisdom in Water, please...: Water as an Economic GoodKatherine Wilkins-Wellshttp://www.blogger.com/profile/01513487171907332182noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6309635188081717685.post-28279244896892356232010-11-29T16:11:49.775-06:002010-11-29T16:11:49.775-06:00David:
Thanks for the comment. I have spent some...David:<br /><br />Thanks for the comment. I have spent some time reading your work on an all-in auction as a possible solution to re-allocating scarce water supplies in the Metropolitan Water District, but have to profess insufficient knowledge of California water institutions to make any correlations what-so-ever of your ideas and concepts to the Kansas situation I do know. Perhaps I'm being far too literal!<br /><br />I am encouraged to hear that farmers would be bidding against other farmers, etc. This makes more sense, but I didn't get that from my readings thus far. And, you say this would be so "quite often", which to me means that it is not necessarily a requirement. I'm still struggling a bit with scale and surmising where the limits could actually end up. Scary stuff when you don't know the possible limits!<br /><br />I see your point on the pricing for managed overdrafts, too. You are correct that this has been the management style anyway, so having this flexibility eases much of the anxiety.<br /><br />Thanks again, I'll continue looking at it. Wayne.Katherine Wilkins-Wellshttps://www.blogger.com/profile/01513487171907332182noreply@blogger.comtag:blogger.com,1999:blog-6309635188081717685.post-57724042800574975412010-11-29T15:41:30.139-06:002010-11-29T15:41:30.139-06:00Hi Wayne:
(1) if your goal is "what the appr...Hi Wayne:<br /><br />(1) if your goal is "what the appropriate pricing of water needs to be to reach sustainable water use?" then you have to cover fixed costs first (done) and then set a price that depends on your definition of sustainable. If that means maintain water tables, then it means no pumping in the Ogallala. But you can set a price to maintain a target overdraft rate, which is the way the Ogallala has been managed for years (as far as I know)<br /><br />(2) All in auctions RE-allocate water among a certain user group, so farmers would be bidding against farmers quite often. Net buyers wouls use more water and transfer more money to net sellers. More here: http://aguanomics.com/2010/08/my-talk-on-all-in-auctions.htmlDavid Zetlandhttps://www.blogger.com/profile/11677758798533719965noreply@blogger.com