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Irrigation Districts and Water Markets: An Application of Cooperative Decision-Making Theory

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  • Michael D. Rosen
  • Richard J. Sexton
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    Abstract

    Water supply organizations control a large portion of agricultural water rights in the western U.S. This paper applies cooperative and club theory models to analyze the response of these organizations to potential rural-to-urban water transfers. Application of the models is to a proposed water trade between Southern California's Imperial Irrigation District and Metropolitan Water District. The analysis reveals that substantial intraorganizational conflict can emerge in response to specific transfer proposals, and this conflict may be sufficient to defeat or delay otherwise beneficial transfers. Poorly defined property rights and a failure to align these rights with operational control in the water supply organization are pinpointed as key sources of conflict.

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    Bibliographic Info

    Article provided by University of Wisconsin Press in its journal Land Economics.

    Volume (Year): 69 (1993)
    Issue (Month): 1 ()
    Pages: 39-53

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    Handle: RePEc:uwp:landec:v:69:y:1993:i:1:p:39-53

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    Web page: http://le.uwpress.org/

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    Cited by:
    1. Andrew Whitford & Benjamin Clark, 2007. "Designing property rights for water: mediating market, government, and corporation failures," Policy Sciences, Springer, vol. 40(4), pages 335-351, December.
    2. Hearne, Robert R. & Trava, Jose L., 1997. "Water Markets in Mexico: Opportunities and Constraints," Discussion Papers 24145, International Institute for Environment and Development, Environmental Economics Programme.
    3. Chatterjee, Bishu & Howitt, Richard E. & Sexton, Richard J., 1998. "The Optimal Joint Provision of Water for Irrigation and Hydropower," Journal of Environmental Economics and Management, Elsevier, vol. 36(3), pages 295-313, November.
    4. Michelsen, Ari M. & McGuckin, J. Thomas & Taylor, R. Garth & Huffaker, Ray G., 1998. "Irrigation District Adoption Of Water Conserving Rate Structures," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20964, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Gary D. Libecap, 2011. "Institutional Path Dependence in Climate Adaptation: Coman's "Some Unsettled Problems of Irrigation"," American Economic Review, American Economic Association, vol. 101(1), pages 64-80, February.
    6. Calatrava-Requena, Javier & Garrido, Alberto, 2003. "The Effects Of Spot Water Markets On The Economic Risk Derived From Variable Water Supply," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25885, International Association of Agricultural Economists.
    7. Donohew, Zachary, 2009. "Property rights and western United States water markets," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(1), March.
    8. Beal, Diana J., 1996. "Emerging Issues in Risk Management in Farm Firms," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 64(03), December.
    9. Francesco Prota, 2002. "Water Resources And Water Policies," Working Papers 8_2002, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
    10. Hearne, Robert R. & William Easter, K., 1997. "The economic and financial gains from water markets in Chile," Agricultural Economics, Blackwell, vol. 15(3), pages 187-199, January.

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