In this paper, we attempt to quantify the shadow price of an additional inch of groundwater resource left in situ for the Southern Ogallala Aquifer. Previous authors have shown the degree to which the optimal resource...In this paper, we attempt to quantify the shadow price of an additional inch of groundwater resource left in situ for the Southern Ogallala Aquifer. Previous authors have shown the degree to which the optimal resource extraction path may diverge from the competitive extraction path based upon varying assumptions. We utilize high-quality data over an unconfined groundwater resource to evaluate the validity of these results. We find that the size of the existing groundwater resource is sufficiently small to result in a divergence between the competitive and socially optimal solutions. We are also able to confirm that the model responds to changes in the parameters in a manner consistent with previous research. Finally, we arrive at a marginal user cost for an additional acre-inch of water which is relatively low, but reasonable given uncertainty about future technological improvements.展开更多
In this paper,the relation between the shadow price and the Lagrange multiplier for nonsmooth optimization problem is explored.It is obtained that the Lagrange multipliers are upper bounds of the shadow price for a co...In this paper,the relation between the shadow price and the Lagrange multiplier for nonsmooth optimization problem is explored.It is obtained that the Lagrange multipliers are upper bounds of the shadow price for a convex optimization problem and a class of Lipschtzian optimization problems.This result can be used in pricing mechanisms for nonsmooth situation.Several nonsmooth functions involved in this class of Lipschtzian optimizations are listed.Finally,an application to electricity pricing is discussed.展开更多
文摘In this paper, we attempt to quantify the shadow price of an additional inch of groundwater resource left in situ for the Southern Ogallala Aquifer. Previous authors have shown the degree to which the optimal resource extraction path may diverge from the competitive extraction path based upon varying assumptions. We utilize high-quality data over an unconfined groundwater resource to evaluate the validity of these results. We find that the size of the existing groundwater resource is sufficiently small to result in a divergence between the competitive and socially optimal solutions. We are also able to confirm that the model responds to changes in the parameters in a manner consistent with previous research. Finally, we arrive at a marginal user cost for an additional acre-inch of water which is relatively low, but reasonable given uncertainty about future technological improvements.
基金supported by the National Natural Science Foundation of China(No.72071130).
文摘In this paper,the relation between the shadow price and the Lagrange multiplier for nonsmooth optimization problem is explored.It is obtained that the Lagrange multipliers are upper bounds of the shadow price for a convex optimization problem and a class of Lipschtzian optimization problems.This result can be used in pricing mechanisms for nonsmooth situation.Several nonsmooth functions involved in this class of Lipschtzian optimizations are listed.Finally,an application to electricity pricing is discussed.
