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Property rights and western United States water markets

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  • Donohew, Zachary

Abstract

This paper addresses water scarcity issues in the American West and examines the allocation of water through the appropriative rights system and the extent markets are used to reallocate water from low- to high-valued uses. The unique physical properties of water make it difficult to bound and measure, which makes defining property rights difficult. Markets are also impeded by disputes over third-party effects due to the interdependencies of water users and complex institutional arrangements that dilute decision-making authority. Analysis of water trading in the western United States indicates that the rate of permanent transfers is increasing over time and urban users are paying higher prices relative to agricultural users.

Suggested Citation

  • 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), pages 1-19.
    • Handle: RePEc:ags:aareaj:161912
    DOI: 10.22004/ag.econ.161912
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    File URL: https://ageconsearch.umn.edu/record/161912/files/j.1467-8489.2007.00427.x.pdf
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    References listed on IDEAS

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    1. Robert A. Young, 1986. "Why Are There So Few Transactions among Water Users?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 68(5), pages 1143-1151.
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    3. Anderson, Terry L & Hill, Peter J, 1975. "The Evolution of Property Rights: A Study of the American West," Journal of Law and Economics, University of Chicago Press, vol. 18(1), pages 163-179, April.
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    8. Lueck, Dean, 1995. "The Rule of First Possession and the Design of the Law," Journal of Law and Economics, University of Chicago Press, vol. 38(2), pages 393-436, October.
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    Citations

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    Cited by:

    1. G. Donoso & O. Melo & C. Jordán, 2014. "Estimating Water Rights Demand and Supply: Are Non-market Factors Important?," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 28(12), pages 4201-4218, September.
    2. Francis Carlo Petterini, 2018. "The Likelihood Of A Water Market In Brazil," Anais do XLIV Encontro Nacional de Economia [Proceedings of the 44th Brazilian Economics Meeting] 190, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    3. Levers, L.R. & Skaggs, T.H. & Schwabe, K.A., 2019. "Buying water for the environment: A hydro-economic analysis of Salton Sea inflows," Agricultural Water Management, Elsevier, vol. 213(C), pages 554-567.
    4. Lankford, Bruce, 2012. "Fictions, fractions, factorials and fractures; on the framing of irrigation efficiency," Agricultural Water Management, Elsevier, vol. 108(C), pages 27-38.
    5. Bajaj, Akshi & Singh, S.P. & Nayak, Diptimayee, 2022. "Impact of water markets on equity and efficiency in irrigation water use: A systematic review and meta-analysis," Agricultural Water Management, Elsevier, vol. 259(C).
    6. Pongspikul, Tayatorn & McCann, Laura M., 2020. "Farmers’ Adoption of Pressure Irrigation Systems: The Case of Cotton Producers in the Southeastern versus Southwestern U.S," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304332, Agricultural and Applied Economics Association.
    7. Broadbent, Craig D. & Brookshire, David S. & Coursey, Don & Tidwell, Vince, 2014. "An experimental analysis of water leasing markets focusing on the agricultural sector," Agricultural Water Management, Elsevier, vol. 142(C), pages 88-98.
    8. Speelman, Stijn & Veettil, Prakashan Chellattan, 2013. "Heterogeneous preferences for water rights reforms among smallholder irrigators in South Africa," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 2(2), pages 1-19, August.
    9. Wilson, Kyle D., 2023. "Simulating a Water Market: An In-Class Activity to Compare Market Efficiency under Various Institutions and Relative Advantages of Agents," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 5(3), September.
    10. Hansen, Kristiana M. & Hovhannisyan, Vardges, 2018. "Determinants of Price in Western Water Markets: A Systems Approach," 2018 Annual Meeting, August 5-7, Washington, D.C. 274303, Agricultural and Applied Economics Association.

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