Consider the Ogallala Aquifer of the U.S. plains states. (A) Define “common property resource” and explain...

Consider the Ogallala Aquifer of the U.S. plains states. (A) Define “common property resource” and explain “common property resource” uses and management issues in the context of the Ogallala Aquifer. (B) Identify and explain using course concepts any two (2) of a regulatory, fine/fee and/or groundwater market solutions to the problems of a common property resource.

Expert Solution

A. Common property resources often leads to market failure due to overexploitation. Common property resources can be defined as a resources which is rivalrous but non excludable. It means there is no restriction on anyone using but when one uses it others cannot use the same good. Another example can be a common lake with fishes. All fishermen can go but catch by one cannot be used by another. As it is common and ownerships is with all, it often gets overexploited.

B. It can be regulated by charging a fees/ issuing licences/ capping the use. Top down is also used. Top down approach means that government makes laws like giving quota per person for fishing or giving licences for usage.

In this case ogallala recharge is slower than its usage and hence usage is becoming unsustainable. Its conservation can be put in the hands of farmers so that actual beneficieries will take responsibility. Rainwater harvesting and percolation underground that rechages aquifer is also a soultion. Farmers can be made to harvest rainwater compulsarily.

Rahul Sunny answered 2 years ago

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