On the spatial nature of the groundwater pumping externality

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Groundwater pumping and spatial externalities in agriculture (2012, background): “Recently, economists have begun incorporating more realistic hydrological assumptions into their models, moving away from the ‘‘bathtub’’ model of an aquifer that assumes water withdrawn by one user lowers the water table instantly and uniformly throughout the entire aquifer [36,6].”
Non-renewable groundwater use and groundwater depletion: a review (2019, background): “These assumptions can lead to significant errors in the calculation of optimal pumping strategies, as compared with more realistic spatially explicit models (Zimmerman 1990, Brozović et al 2010).”