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A Place for Water Markets: Performance and Challenges


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  • Ereney Hadjigeorgalis
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    The 2006 United Nations Human Development Report paints a dismal picture of global water scarcity and the increasing pressures on agricultural water supplies. While it acknowledges that demand-side policies are more effective than supply-side approaches, it remains skeptical of water markets as a means of managing scarce water supplies. This contrasts sharply with the successful implementation of water markets within the United States and other countries. To clarify the debate, this article evaluates the performance of established water markets. It also considers different challenges posed by water markets in developed and developing countries and discusses how countries can overcome these challenges. Copyright 2009, Oxford University Press.

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    Article provided by Agricultural and Applied Economics Association in its journal Review of Agricultural Economics.

    Volume (Year): 31 (2009)
    Issue (Month): 1 ()
    Pages: 50-67

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    Handle: RePEc:oup:revage:v:31:y:2009:i:1:p:50-67

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    Cited by:
    1. Dionisios Latinopoulos & Eftichios Sartzetakis, 2013. "Using tradable water permits in irrigated agriculture," Discussion Paper Series 2013_04, Department of Economics, University of Macedonia, revised Dec 2013.
    2. Truong, Chi H. & Drynan, Ross G., 2013. "Capacity sharing enhances efficiency in water markets involving storage," Agricultural Water Management, Elsevier, vol. 122(C), pages 46-52.
    3. William Nikolakis & Quentin Grafton, 2011. "Are there incentives to integrate to land and water management across northern Australia?," Environmental Economics Research Hub Research Reports 10109, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
    4. William Nikolakis & Aimee Nygaard & Quentin Grafton, 2011. "Adapting to climate change for water resource management: Issues for northern Australia," Environmental Economics Research Hub Research Reports 10108, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
    5. Ming-Feng Hung & Bin-Tzong Chie, 2013. "Residential Water Use: Efficiency, Affordability, and Price Elasticity," Water Resources Management, Springer, vol. 27(1), pages 275-291, January.


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