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Water Rights Heterogeneity And Price Determination: How Market And Product Attributes Affect Agricultural Water Market Prices

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  • Hadjigeorgalis, Ereney
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    Abstract

    This research aims to further the understanding of price behavior in predominantly agricultural water markets through a hedonic estimation of the impact of market and product attributes on water rights prices in the Cachapoal River Valley of South-Central Chile. It is hypothesized that the price of a water right in the valley is primarily a function of the reliability of that water right (product attribute) and the increasing relative scarcity of water in the valley (market attribute). This article aims to test the joint hypotheses that reliability and relatively scarcity positively affect water rights prices. In addition, it will estimate the magnitude of these product and market attributes on market prices.

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    File URL: http://purl.umn.edu/19790
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    Bibliographic Info

    Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2002 Annual meeting, July 28-31, Long Beach, CA with number 19790.

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    Date of creation: 2002
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    Handle: RePEc:ags:aaea02:19790

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    Keywords: Demand and Price Analysis; Resource /Energy Economics and Policy;

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    1. Jan P. Crouter, 1987. "Hedonic Estimation Applied to a Water Rights Market," Land Economics, University of Wisconsin Press, vol. 63(3), pages 259-271.
    2. Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
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