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Research on economic instruments for water allocation in a river

Research Project

Project/Area Number 16530161
Research Category

Grant-in-Aid for Scientific Research (C)

Allocation TypeSingle-year Grants
Section一般
Research Field Applied economics
Research InstitutionKeio University

Principal Investigator

ONUMA Ayumi  KEIO University, Department of Economics, Professor, 経済学部, 教授 (60203874)

Project Period (FY) 2004 – 2006
Project Status Completed (Fiscal Year 2006)
Budget Amount *help
¥2,400,000 (Direct Cost: ¥2,400,000)
Fiscal Year 2006: ¥700,000 (Direct Cost: ¥700,000)
Fiscal Year 2005: ¥800,000 (Direct Cost: ¥800,000)
Fiscal Year 2004: ¥900,000 (Direct Cost: ¥900,000)
Keywordsinternational river / cooperation / non-cooperation / ecological system / non-point source pollution / second-best / input tax / polluting permit / 水資源配分 / 淡水生態系 / 環境税 / 水質汚染 / 面限汚染 / 農薬汚染 / 最適税率 / 次善税率 / 注意
Research Abstract

Three researches were achieved. First of all, "An Ecological Implication of a Cooperative Water Resources Allocation in a River Basin" deals with the problem of water allocation in an international river, which sometimes makes an tension among the countries located in the river. In order to mitigate the tension, cooperation among countries is proposed. In our research, it is shown that cooperation can reduce total water use throughout the river. The condition is the property of "response function", which is the decision function of a country's water use against the level of water use in upstream countries. If the function satisfies some properties, then it always holds that cooperation leads to declining the total water use, which will give a good effect on fresh water ecosystem in the river.
The other two researches are ones concerning "non-point pollution". To begin with, "Non-point Source Pollution and the Second Best Taxation on Pesticide" studies the second-best taxation on pesticide in agriculture, since it is generally impossible to monitor the level of care by a farmer, which mitigates the pollution from pesticide. Our analysis shows that the second-best is achieved by the taxation on pesticide, whose rate can be positive, zero or negative, depending on the runoff, production and cost functions.
In "On the trading rate of polluting permits between point and non-point sources" studies the first-best trading ratio of polluting permits between point and non-point sources. The interesting characteristics are that the rate is not one to one. In some programs carried out, one permit from the point source is traded with two or three permits from the non-point source. Our study shows that such rate is not the first-best. The first-best is conversely that one permit from the point source is traded with less than one permit from the non-point source.

Report

(4 results)
  • 2006 Annual Research Report   Final Research Report Summary
  • 2005 Annual Research Report
  • 2004 Annual Research Report

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Published: 2004-04-01   Modified: 2016-04-21  

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