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<br />external costs. <br />individual pumper <br />social optimum is <br />q', and q < q'. <br /> <br />As can be seen from the figure below, the <br />withdraws more than is socially optimal. <br />q while the actual private,withdr~~al is <br /> <br />The" <br /> <br />Social Marginal Cost versus Private Mac"ginal Cost <br /> <br />I,J, <br /> <br /> <br />.: <br /> <br />pJUc.e oIL <br /> <br />Vemand c.LlItve <br /> <br />" ' <br /> <br />, , <br /> <br />C.0.6:t pelt' <br />utU-t 06 wa-telt I <br /> <br />MSC <br /> <br />MPC <br /> <br />q q' <br /> <br />Q.u.aLi.:ty 06 wa.telt <br /> <br />The traditionally suggested solution to the common-property problem <br />is to impose the necessary per-unit tax or subsidy to achieve the <br />opt imum. I.. <br /> <br />During the ensuing' discussion, the philosophy of intra, and inter-state <br />transfers of water was discussed, The consensus was that planning <br />studies should first concern, themselves with intr.astate transfers prior <br />to considering intersta'te transfers. One phas,e of the discussion noted <br />unitizing wells for irrigation might extend the',life of the aquifer, <br />Unitizing has been done by the oil and gas industry, A question'as to, <br />how all the factors brought out during the seminar will affect water '~se <br />per acre for irrigation r~sulte'd in a consensus that we could expect: ", <br />greater conservation in delivering water to the field, efficiencies in <br />application, use by plants, and finally, a reduction in the amount of <br />water now wasted, <br /> <br />Mr. M. T. Musik, Agricultural Engineer, Agricultural, Research Service, <br />U,S, Department of Agricu'lture, provided the following comments after <br />the seminar. <br /> <br />I, Edward F. Renshaw, "The Management of Ground, Water Reservoirs," <br />Journal of Farm Economics, Vol. 45, No.2; May 1963, p. 293,' <br /> <br />18. <br />