Groundwater-related subsidence

Groundwater-related subsidence is the subsidence (or the sinking) of land resulting from unsustainable groundwater extraction. It is a growing problem in the developing world as cities increase in population and water use, without adequate pumping regulation and enforcement. One estimate has 80% of serious U.S. land subsidence problems associated with the excessive extraction of groundwater.^[1]

Groundwater can be considered one of the last free resources, as anyone who can afford to drill can usually draw up merely according to their ability to pump (depending on local regulations). However, as seen in the figure, pumping-induced draw down causes a depression of the groundwater surface around the production well. This can ultimately affect a large region by making it more difficult and expensive to pump the deeper water. Thus, the extraction of groundwater becomes a tragedy of the commons, with resulting economic externalities.