ABSTRACT
When used in conjunction with surface water for irrigation, pumped groundwater serves two roles: to increase the quantity of and to mitigate fluctuations in the supply of water. The latter is the stabilization role. The economic benefit associated with this stabilization role is first analyzed. The implications for the development of groundwater resources are then investigated. An estimate is given of the stabilization benefit to wheat growers of the fossil water aquifer underlying the Israeli Negev. It is found that, under the prevailing variability in the supply of surface water, this benefit may well exceed the groundwater benefit associated with the increase in water supply.
