Groundwater Management in a Cross Boundary Case: Application to Israel and the Palestinian Authority

  • Edna Loehman
  • Nir Becker


To achieve temporal economic efficiency for groundwater in a geographic region such as the West Bank, we propose a management system that is a combination of a nonprofit regional utility with a representative governing body. Water prices would be determined by the utility to balance supply and demand and meet specific groundwater use limits. Revenue from water pricing would provide funds for investments to expand supply through water recycling and new technologies such as desalination. The desired levels of investment and security would be determined by a representative body of water users who would express willingness to pay for these public goods. Simulation modeling indicates that water prices could fall over time as investment and groundwater storage increase. While a water market could improve spatial allocation, it would not necessarily address sustainability or provide for investment.


aquifer management pricing sustainability utility water 


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Copyright information

© Springer-Verlag Berlin Heidelberg 2007

Authors and Affiliations

  • Edna Loehman
    • 1
  • Nir Becker
    • 2
  1. 1.Department of Agricultural EconomicsPurdue UniversityPurdueUSA
  2. 2.Department of Economics and Management, Tel-Hai CollegeNRERC, Haifa UniversityIsrael

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