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| Preface | |
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| Acknowledgments | |
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| Water Unit Conversions | |
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| Introduction | |
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| An Array of Decision Types | |
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| Amid the Noise | |
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| Supply Enhancement and Demand Management | |
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| Future Forces | |
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| Economics, Environment, and Equity | |
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| Organization and Conventions | |
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| Exercises | |
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| Optimal Allocation and Development | |
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| Establishment Goals | |
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| The Fundamental Economic Theory | |
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| The Costs of Water Supply | |
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| Efficiency for a Single Water-Using Agent | |
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| Aggregation and Acquisition of Marginal Net Benefit Functions | |
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| (Aggregate) Economic Efficiency | |
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| The Universal Advisory Term: Opportunity Costs | |
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| Further Adjustments for the Idiosyncrasies of Water | |
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| Economic Efficiency in the Presence of Return Flows | |
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| Economic Efficiency with Nonrivalness | |
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| Neutral Economic Efficiency | |
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| Is Water Conservation an Additional Goal? | |
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| Summary | |
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| Exercises | |
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| Constrained Optimization Using the Lagrangian Method | |
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| Necessary Conditions | |
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| Interpretation of Lagrange Multipliers | |
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| Sufficient Conditions | |
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| Minimization and Multiple Constraints | |
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| Efficiency in a Dynamic World | |
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| Rates of Time Preference | |
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| The Underlying Theory | |
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| Time Values of Money | |
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| What Is the Social Time Value of Money? | |
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| Not Risk, Not Inflation | |
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| Market Revelations of the Discount Rate | |
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| Discounting: A Summary | |
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| Dynamic Improvement and Dynamic Efficiency | |
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| Other Metrics | |
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| NPV versus the Others | |
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| Is Dynamic Efficiency/Improvement Neutral or Aggregate? | |
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| Dynamic Efficiency: A Two-Period Graphic Exposition | |
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| Dynamic Efficiency: The Basic Calculus | |
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| A Fundamental Example: Drawing from a Reservoir | |
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| Extendable in Many Possible Directions | |
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| How Fast Should Ground Water Be Depleted? | |
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| Summary | |
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| Exercises | |
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| Amortization | |
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| Advanced Methods of Dynamic Optimization | |
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| Social Institutions | |
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| The Economics of Institutions | |
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| What If You Had to Choose? | |
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| The Invisible Hand and the First Theorem of Welfare Economics | |
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| Market Failure | |
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| Consequently, . . . | |
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| The Nature of Property | |
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| The Assignment of Property: Who Should Get It? | |
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| Legal Institutions | |
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| Water Law | |
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| Surface Water Law | |
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| Ground Water Law | |
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| Conjunctive Management | |
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| Treaties and Compacts | |
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| Summary | |
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| Exercises | |
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| Policy Analysis | |
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| Two Policy Analysis Forms: Theoretical and Empirical | |
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| Empirical Policy Analysis: The Ins and Outs of Compensation Tests | |
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| Consumer and Producer Surplus Measurement | |
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| Price-Rationing Policy | |
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| Quantity-Rationing Policy | |
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| Demand-Shifting Policy | |
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| Supply-Shifting Policy | |
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| Overview and Analysis of Other Policy Types | |
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| Incorporating �NB into NPV for Dynamic Policies | |
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| Secondary Economic Effects | |
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| Incommensurables and Intangibles | |
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| Summary | |
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| Exercises | |
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| Cost-Benefit Analysis | |
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| Policy Background | |
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| Required Economic Analyses: Principles and Guidelines | |
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| Envisioning CBA as More Than NPV | |
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| A Spreadsheet in Need of Entries | |
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| Obtaining the Benefits and Costs | |
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| A Project Analysis Example: Applewhite Reservoir | |
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| Multipurpose Projects | |
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| Using Alternative Costs as a Benefit Measure | |
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| The Costs of Borrowed Funds | |
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| Financing Projects: Implications for CBA | |
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| Cost Allocation by Separable Costs-Remaining Benefits | |
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| Summary | |
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| Exercises | |
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| Water Marketing | |
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| The Instruments of Water Marketing | |
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| The Upside: Unlocking the Resource from Low-Value Applications | |
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| Basic Water Trade and Value Theory | |
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| Modified Theory in the Presence of Transaction Costs (Optional Topic) | |
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| A Typical Exchange Framework | |
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| The Downside: Guarding against Market Failures | |
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| Can the Downside be Fixed? | |
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| The Worldwide Extent of Marketing | |
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| Leading U.S. Markets | |
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| The Grounds for Area-of-Origin Protectionism | |
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| The Ground Water Challenge | |
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| Summary | |
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| Exercises | |
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| Water Pricing | |
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| The Terms of Pricing | |
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| The Customary Objectives of Rate Setting | |
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| Accounting Practice | |
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| The Economic Theory of Pricing | |
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| Specific Seasonal Volumetric Rates | |
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| Wastewater Charges: A Complication | |
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| Summary | |
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| Exercises | |
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| Demand Analysis | |
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| Demand Is More Demanding Than Value | |
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| The "Requirements" Approach | |
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| Demand Methodology | |
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| Point Expansion | |
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| Residual Imputation | |
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| Activity Analysis and Math Programming | |
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| Production Functions | |
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| Direct Statistical Regression | |
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| Nonmarket Valuation Techniques | |
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| Contingent Valuation | |
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| Hedonic Pricing | |
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| Travel Costs | |
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| Empirical Demand Findings for Three Sectors | |
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| When Considering Prior Example Studies. . . | |
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| Residential Water Demand | |
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| Industrial and Commerical Water Demand | |
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| Agricultural Water Demand | |
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| Summary | |
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| Exercises | |
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| Joining Point Expansion and Residual Imputation Methods | |
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| Supply Analysis | |
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| The Roles of Supply Information | |
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| The Primary Feature of Supply Empiricism: Single Suppliers | |
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| The Process of Processing Water | |
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| Conceptualizing Costs | |
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| Basic Methods of Supply Estimation | |
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| The Privatization Question | |
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| Summary | |
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| Exercises | |
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| Modeling with Demand and Supply | |
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| Moving from Theory to Empiricism | |
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| Features of More Advanced Models | |
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| A First Model | |
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| What Has Been Gained, Really? | |
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| A Brief Survey of Studies | |
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| A Second Model | |
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| Summary | |
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| Exercises | |
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| Converting Functions for Water Type | |
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| The Water Challenge | |
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| Economically Inspired Principles | |
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| Making a Difference | |
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| Glossary | |
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| References | |
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| Index | |