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Irrigation Districts and Water Markets: An Application of Cooperative Decision-Making Theory

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  • Michael D. Rosen
  • Richard J. Sexton

Abstract

Water supply organizations control a large portion of agricultural water rights in the western U.S. This paper applies cooperative and club theory models to analyze the response of these organizations to potential rural-to-urban water transfers. Application of the models is to a proposed water trade between Southern California's Imperial Irrigation District and Metropolitan Water District. The analysis reveals that substantial intraorganizational conflict can emerge in response to specific transfer proposals, and this conflict may be sufficient to defeat or delay otherwise beneficial transfers. Poorly defined property rights and a failure to align these rights with operational control in the water supply organization are pinpointed as key sources of conflict.

Suggested Citation

  • Michael D. Rosen & Richard J. Sexton, 1993. "Irrigation Districts and Water Markets: An Application of Cooperative Decision-Making Theory," Land Economics, University of Wisconsin Press, vol. 69(1), pages 39-53.
    • Handle: RePEc:uwp:landec:v:69:y:1993:i:1:p:39-53
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    Citations

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    Cited by:

    1. Calatrava-Requena, Javier & Garrido, Alberto, 2003. "The Effects Of Spot Water Markets On The Economic Risk Derived From Variable Water Supply," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25885, International Association of Agricultural Economists.
    2. Xinde Ji & Kelly M. Cobourn, 2018. "The Economic Benefits of Irrigation Districts under Prior Appropriation Doctrine: An Econometric Analysis of Agricultural Land‐Allocation Decisions," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 66(3), pages 441-467, September.
    3. Michelsen, Ari M. & McGuckin, J. Thomas & Taylor, R. Garth & Huffaker, Ray G., 1998. "Irrigation District Adoption Of Water Conserving Rate Structures," 1998 Annual meeting, August 2-5, Salt Lake City, UT 20964, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Beal, Diana J., 1996. "Emerging Issues in Risk Management in Farm Firms," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 64(03), pages 1-12, December.
    5. Malte Hückstädt, 2022. "Coopetition between frenemies–interrelations and effects of seven collaboration problems in research clusters," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(9), pages 5191-5224, September.
    6. 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.
    7. Emerick, Kyle & Lueck, Dean, 2015. "Economic Organization and the Structure of Water Transactions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 40(3), pages 1-18, September.
    8. Debaere, Peter & Li, Tianshu, 2017. "The Effects of Water Markets: Evidence from the Rio Grande," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259187, Agricultural and Applied Economics Association.
    9. Ji, Xinde & Cobourn, Kelly M., 2017. "Water Availability, Land Allocation, and the Role of Irrigation Districts under Prior Appropriation Doctrine," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258377, Agricultural and Applied Economics Association.
    10. Konyar, Kazim & McCormick, Ian & Osborn, Tim, 1993. "The U.S. Agricultural Resources Model (USARM): Model Documentation," Staff Reports 278704, United States Department of Agriculture, Economic Research Service.
    11. Francesco Prota, 2002. "Water Resources And Water Policies," Working Papers 8_2002, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
    12. Easter, K. William & Feder, Gershon, 1996. "Water Institutions And Economic Incentives To Ameliorate Market And Government Failures," Staff Papers 14217, University of Minnesota, Department of Applied Economics.
    13. 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.
    14. Hearne, Robert R. & Trava, Jose L., 1997. "Water Markets in Mexico: Opportunities and Constraints," Discussion Papers 24145, International Institute for Environment and Development, Environmental Economics Programme.
    15. Chatterjee, Bishu & Howitt, Richard E. & Sexton, Richard J., 1998. "The Optimal Joint Provision of Water for Irrigation and Hydropower," Journal of Environmental Economics and Management, Elsevier, vol. 36(3), pages 295-313, November.
    16. Gary D. Libecap, 2011. "Institutional Path Dependence in Climate Adaptation: Coman's "Some Unsettled Problems of Irrigation"," American Economic Review, American Economic Association, vol. 101(1), pages 64-80, February.
    17. Ellen M. Bruno & Richard J. Sexton, 2020. "The Gains from Agricultural Groundwater Trade and the Potential for Market Power: Theory and Application," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(3), pages 884-910, May.
    18. Andrew Whitford & Benjamin Clark, 2007. "Designing property rights for water: mediating market, government, and corporation failures," Policy Sciences, Springer;Society of Policy Sciences, vol. 40(4), pages 335-351, December.
    19. Turner, Brenda & Perry, Gregory M., 1997. "Agriculture To Instream Water Transfers Under Uncertain Water Availability: A Case Study Of The Deschutes River, Oregon," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 22(2), pages 1-14, December.
    20. Heckelei, Thomas & Britz, Wolfgang, 2005. "Models Based on Positive Mathematical Programming: State of the Art and Further Extensions," 89th Seminar, February 2-5, 2005, Parma, Italy 234607, European Association of Agricultural Economists.
    21. Gary D. Libecap, 2010. "Water Rights and Markets in the U.S. Semi Arid West: Efficiency and Equity Issues," ICER Working Papers 30-2010, ICER - International Centre for Economic Research.
    22. Zachary Donohew, 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 85-103, January.

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