Sustainable water resource exploitation for intergenerational equity

This paper uses a mixed Bentham–Rawls criterion to investigate optimal water resource management, emphasising intergenerational equity. The study develops an economic model with a discrete logistic water reproduction function to balance the needs of current and future generations. Combining utilitarian and Rawlsian principles, it creates a long-term social welfare criterion to optimise water consumption and allocation over time. Numerical simulations show that giving more weight to the Rawlsian component leads to reduced water use in the early years, promoting long-term sustainability. In addition, higher initial water stocks increase welfare for future generations, highlighting the benefits of larger resources for lasting impacts. The proposed approach outperforms existing strategies by offering a dynamic, equitable method for water regulation, ensuring non-declining welfare across generations. This research contributes to a novel framework for sustainable water resource exploitation while providing practical insights for river basin authorities. The findings emphasise the importance of balancing short-term needs with long-term sustainability to ensure fair distribution of resources and welfare.