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Replenishable but depletable resources: water

Replenishable but depletable resources: water

Environmental and natural resource economics: 222-247

Efficiency dictates that replenishable water be allocated so as to equalize the marginal net benefits of water use even when supplies are higher or lower than normal. The efficient allocation of groundwater requires that the user cost of that depletable resource be considered. When marginal cost pricing (including marginal user cost) is used, water consumption patterns strike an efficient balance between present and future uses.

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