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Water Markets And Third Party Effects

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  • Bourgeon, Jean-Marc
  • Easter, K. William
  • Smith, Rodney B.W.

Abstract

This paper examines the potential effects of water trading on the service sector of a rural economy. The economy earns income producing an irrigated agricultural product and a non-agricultural (service) good, and possibly by selling water. Among other things, we show when none of the water income leaves the region (no income flight), water trading enhances regional welfare. We then show if income flight is "large enough", water trading has the opposite effect. Albeit, even under income flight, if the income flight problem is not too serious, water trading will enhance regional welfare.

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Bibliographic Info

Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2004 Annual meeting, August 1-4, Denver, CO with number 20231.

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Date of creation: 2004
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Handle: RePEc:ags:aaea04:20231

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Keywords: Resource /Energy Economics and Policy;

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Cited by:
  1. Jason Henderson & Maria Akers, 2008. "Can markets improve water allocation in rural America?," Economic Review, Federal Reserve Bank of Kansas City, issue Q IV, pages 97-117.
  2. Marianne LEFEBVRE & Lata GANGADHARAN & Sophie THOYER, 2011. "Do Security-differentiated Water Rights Improve Efficiency?," Working Papers 11-14, LAMETA, Universtiy of Montpellier, revised Jun 2012.

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