IDEAS home Printed from https://ideas.repec.org/a/oup/wbrobs/v14y1999i1p99-116.html
   My bibliography  Save this article

Formal and Informal Markets for Water: Institutions, Performance, and Constraints

Author

Listed:
  • Easter, K William
  • Rosegrant, Mark W
  • Dinar, Ariel

Abstract

Water markets -- either formal or informal -- can be an efficient method for reallocating scarce water supplies. At the same time certain constraints can raise the transaction costs of trading water. This paper reviews the conditions necessary to establish successful water markets, identifies potential problems, and offers mitigating strategies. It also uses examples of several informal and formal water markets already in operation to illustrate these problems and the solutions to them. Copyright 1999 by Oxford University Press.

Suggested Citation

  • Easter, K William & Rosegrant, Mark W & Dinar, Ariel, 1999. "Formal and Informal Markets for Water: Institutions, Performance, and Constraints," World Bank Research Observer, World Bank Group, vol. 14(1), pages 99-116, February.
  • Handle: RePEc:oup:wbrobs:v:14:y:1999:i:1:p:99-116
    as

    Download full text from publisher

    File URL: http://www.worldbank.org/research/journals/wbro/obsfeb99/pdf/article5.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Marca Weinberg & Catherine L. Kling & James E. Wilen, 1993. "Water Markets and Water Quality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(2), pages 278-291.
    2. Meinzen-Dick, Ruth Suseela, 1996. "Groundwater markets in Pakistan: participation and productivity," Research reports 105, International Food Policy Research Institute (IFPRI).
    3. Thobani, Mateen, 1997. "Formal Water Markets: Why, When, and How to Introduce Tradable Water Rights," World Bank Research Observer, World Bank Group, vol. 12(2), pages 161-179, August.
    4. Smith, Vernon L, 1985. "Experimental Economics: Reply," American Economic Review, American Economic Association, vol. 75(1), pages 264-272, March.
    5. Hearne, Robert R. & William Easter, K., 1997. "The economic and financial gains from water markets in Chile," Agricultural Economics, Blackwell, vol. 15(3), pages 187-199, January.
    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. Quentin Grafton & Clay Landry & Gary Libecap & Sam McGlennon & Bob O'Brien, 2010. "An Integrated Assessment of Water Markets: Australia, Chile, China, South Africa and the USA," Centre for Water Economics, Environment and Policy Papers 1009, Centre for Water Economics, Environment and Policy, Crawford School of Public Policy, The Australian National University.
    2. Khan, Shahbaz & Rana, Tariq & Hanjra, Munir A. & Zirilli, John, 2009. "Water markets and soil salinity nexus: Can minimum irrigation intensities address the issue?," Agricultural Water Management, Elsevier, vol. 96(3), pages 493-503, March.
    3. Rouhi-Rad, Mani & Brozovic, Nicholas & Mieno, Taro, 2015. "Implications of Search Frictions for Tradeable Permit Markets," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205798, Agricultural and Applied Economics Association;Western Agricultural Economics Association.
    4. Basil Sharp, 2002. "Institutions and Decision Making for Sustainable Development," Treasury Working Paper Series 02/20, New Zealand Treasury.
    5. Hanemann, Michael, 2014. "Property rights and sustainable irrigation—A developed world perspective," Agricultural Water Management, Elsevier, vol. 145(C), pages 5-22.
    6. M Ejaz Qureshi & Tian Shi & Sumaira Qureshi & Wendy Proctor & Mac Kirby, 2009. "Removing Barriers to Facilitate Efficient Water Markets in the Murray Darling Basin – A Case Study from Australia," Socio-Economics and the Environment in Discussion (SEED) Working Paper Series 2009-02, CSIRO Sustainable Ecosystems.
    7. repec:eee:agiwat:v:195:y:2018:i:c:p:47-57 is not listed on IDEAS
    8. Stephen Bell & John Quiggin, "undated". "The Metagovernance of Markets: The Politics of Water Management in Australia," Murray-Darling Program Working Papers WP6M06, Risk and Sustainable Management Group, University of Queensland.
    9. Hansen, Kristiana, 2010. "Water Markets and Water Rights Markets in the Western United States," Western Economics Forum, Western Agricultural Economics Association, vol. 9(02).
    10. Shiferaw, Bekele & Reddy, V. Ratna & Wani, Suhas P., 2008. "Watershed externalities, shifting cropping patterns and groundwater depletion in Indian semi-arid villages: The effect of alternative water pricing policies," Ecological Economics, Elsevier, vol. 67(2), pages 327-340, September.
    11. Qureshi, M. Ejaz & Shi, Tian & Qureshi, Sumaira E. & Proctor, Wendy, 2009. "Removing barriers to facilitate efficient water markets in the Murray-Darling Basin of Australia," Agricultural Water Management, Elsevier, vol. 96(11), pages 1641-1651, November.
    12. Anonymous, 2003. "Water Rights Arrangements in Australia and Overseas," Commission Research Papers 31899, Productivity Commission.
    13. Robert Mendelsohn & Ariel Dinar, 2003. "Climate, Water, and Agriculture," Land Economics, University of Wisconsin Press, vol. 79(3), pages 328-341.
    14. Ansink, Erik & Houba, Harold, 2012. "Market power in water markets," Journal of Environmental Economics and Management, Elsevier, vol. 64(2), pages 237-252.
    15. 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].
    16. repec:ags:aaea16:236373 is not listed on IDEAS
    17. Johannus Janmaat, 2011. "Water Markets, Licenses, and Conservation: Some Implications," Land Economics, University of Wisconsin Press, vol. 87(1), pages 145-159.
    18. Dutta, Mrinal Kanti, 2012. "Institution of Ground Water Market for Management of Ground Water Resource: A Study from Assam in Northeast India," 2012 Conference (56th), February 7-10, 2012, Freemantle, Australia 124291, Australian Agricultural and Resource Economics Society.

    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:oup:wbrobs:v:14:y:1999:i:1:p:99-116. 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: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: http://edirc.repec.org/data/wrldbus.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.