IDEAS home Printed from https://ideas.repec.org/a/fip/fedker/y2008iqivp97-117nv.93no.4.html
   My bibliography  Save this article

Can markets improve water allocation in rural America?

Author

Listed:
  • Jason Henderson
  • Maria Akers

Abstract

Water, one of the most fundamental resources for economic activity, covers about three-fourths of the earth’s surface--but only 2.5 percent of that amount is considered fresh water. While freshwater supplies in the United States are relatively abundant, increasing demand and drought, especially in the Great Plains, have left some states wondering whether there is enough fresh water to go around. ; The drive for greater efficiency in the use of water has led to the emergence of water markets. These markets allow for the equitable transfer of water rights from lower-value agricultural uses to higher-value uses, such as for emerging industries and growing municipalities. Many rural communities, though, view water markets as a threat to their economic foundation and future growth. ; Henderson and Akers examine how water markets affect both water right holders and their rural communities. They conclude that other mechanisms, in combination with water markets, may be needed to improve the efficiency of water allocation and compensate rural communities for lost economic activity.

Suggested Citation

  • 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.
  • Handle: RePEc:fip:fedker:y:2008:i:qiv:p:97-117:n:v.93no.4
    as

    Download full text from publisher

    File URL: http://www.kansascityfed.org/PUBLICAT/ECONREV/PDF/4q08Henderson.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Howitt, Richard E. & Hansen, Kristiana, 2005. "The Evolving Western Water Markets," Choices, Agricultural and Applied Economics Association, vol. 20(1).
    2. repec:mes:jeciss:v:24:y:1990:i:2:p:463-472 is not listed on IDEAS
    3. Jean-Marc Bourgeon & K. William Easter & Rodney B.W. Smith, 2008. "Water Markets and Third-Party Effects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, pages 902-917.
    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


    Cited by:

    1. Cowley, Cortney, 2016. "The Dispersion of Farmland Values in the Tenth District," Economic Review, Federal Reserve Bank of Kansas City, issue Q IV, pages 29-67.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedker:y:2008:i:qiv:p:97-117:n:v.93no.4. 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: (LDayrit). General contact details of provider: http://edirc.repec.org/data/frbkcus.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.