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We studied transboundary ground water management problems in the presence of hydraulic fracturing (fracking). We found that the presence of risk suggests a need to exercise caution in fracking. We also found that a cooperative outcome implies the decrease in fracking and the increase in steady state survival rate of groundwater. However, water extraction rates remained the same in both cooperative and noncooperative solutions. We also argue that a Pigouvian type tax could be imposed on the natural gas developers.

Keywords: cooperative and noncooperative games ; groundwater ; hydraulic fracturing

Subject(s): Resource /Energy Economics and Policy

Risk and Uncertainty

Issue Date: 2013

Publication Type: Conference Paper/ Presentation

PURL Identifier: http://purl.umn.edu/161891

Total Pages: 24

JEL Codes: C7; Q25; Q40; Q53

Record appears in: Agricultural and Applied Economics Association (AAEA) > 2014 Allied Social Sciences Association (ASSA) Annual Meeting, January 3-5, 2014, Philadelphia, PA





Autor: Poudel, Biswo N. ; Paudel, Krishna P. ; Zilberman, David

Fuente: http://ageconsearch.umn.edu/record/161891?ln=en







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