Advanced Search
MyIDEAS: Login

Tradable water rights : a property rights approach to resolving water shortages and promoting investment

Contents:

Author Info

  • Holden, Paul
  • Thobani, Mateen

Abstract

In most countries, the state owns the water and hydraulic infrastructure, and public officials decide who gets water rights, how the water is to be used, and how much will be charged for its use. The authors of this paper compare administered systems of water allocation with a system of tradable water rights, and argue that water allocation by administrative edict has resulted in costly, large-scale inefficiencies in the supply and use of water, even withan adequate institutional framework. Secure property rights, on the other hand, have been shown to have a powerful positive effect on investment and efficiency, although only a few countries have tried to take advantage of the allocative efficiencies of a market to assign water resources among users. The authors argue that in order to ensure implementation of an effective water market system, attention should be paid to: (i) ensuring stakeholder participation in designing and implementing the new legislation; (ii) deciding on new rules for the initial allocation of rights and for how new rights should be allocated; (iii) establishing a public registry and block titling; (iv) setting up or strengthening water user associations; (v) protecting against the development of potential monopolies; (vi) ensuring that trades do not infringe on the water rights of existing users; and (vii) establishing appropriate environmental laws.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/1996/07/01/000009265_3961214131318/Rendered/PDF/multi_page.pdf
Download Restriction: no

Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 1627.

as in new window
Length:
Date of creation: 31 Jul 1996
Date of revision:
Handle: RePEc:wbk:wbrwps:1627

Contact details of provider:
Postal: 1818 H Street, N.W., Washington, DC 20433
Phone: (202) 477-1234
Email:
Web page: http://www.worldbank.org/
More information through EDIRC

Related research

Keywords: Water Resources Law; Water and Industry; Water Supply and Systems; Environmental Economics&Policies; Water Conservation; Water Supply and Sanitation Governance and Institutions; Town Water Supply and Sanitation; Water Conservation; Water and Industry; Water Use;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Alchian, Armen A. & Demsetz, Harold, 1973. "The Property Right Paradigm," The Journal of Economic History, Cambridge University Press, vol. 33(01), pages 16-27, March.
  2. Paul Holden & Sarath Rajapatirana, 1995. "Unshackling the Private Sector A Latin American Story," Reports _019, World Bank Latin America and the Caribean Region Department.
  3. Rosegrant, Mark W. & Binswanger, Hans P., 1994. "Markets in tradable water rights: Potential for efficiency gains in developing country water resource allocation," World Development, Elsevier, vol. 22(11), pages 1613-1625, November.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Evans, Elizabeth M. & Lee, David R. & Boisvert, Richard N. & Arce, Blanca & Steenhuis, Tammo S. & Prano, Mauricio & Poats, Susan V., 2003. "Achieving efficiency and equity in irrigation management: an optimization model of the El Angel watershed, Carchi, Ecuador," Agricultural Systems, Elsevier, vol. 77(1), pages 1-22, July.
  2. Shah, Tushaar & Ul Hassan, Mehmood & Khattak, Muhammad Zubair & Banerjee, Parth Sarthi & Singh, O.P. & Rehman, Saeed Ur, 2009. "Is Irrigation Water Free? A Reality Check in the Indo-Gangetic Basin," World Development, Elsevier, vol. 37(2), pages 422-434, February.
  3. Yerushalmi, Erez, 2012. "Measuring the administrative water allocation mechanism and agricultural amenities," The Warwick Economics Research Paper Series (TWERPS) 992, University of Warwick, Department of Economics.
  4. Evans, Elizabeth M. & Lee, David R. & Boisvert, Richard N., 2002. "Achieving Efficiency And Equity In Irrigation Management: An Optimization Model Of The El Angel Watershed, Carchi, Ecuador," 2002 Annual meeting, July 28-31, Long Beach, CA 19742, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  5. Paul Lewin, 2005. "Análisis de la Eficiencia del Mercado de Derechos de Aprovechamiento de Aguas en Chile," Others 0503005, EconWPA.
  6. Marianne Keudel, 2007. "Climate Change and Water Resources – An International Perspective," IWP Discussion Paper Series 02/2007, Institute for Economic Policy, Cologne, Germany.
  7. Ansink, Erik & Weikard, Hans-Peter, 2009. "Contested water rights," European Journal of Political Economy, Elsevier, vol. 25(2), pages 247-260, June.
  8. Alan Richards & Nirvikar Singh, 2004. "No Easy Exit: Property Rights, Markets, and Negotiations over Water," Development and Comp Systems 0412011, EconWPA.
  9. Zhang, Lei & Heerink, Nico & Dries, Liesbeth & Qu, Futian, 2012. "Water users associations and agricultural water use efficiency in northern China," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125214, International Association of Agricultural Economists.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:1627. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.