Reviewing the arguments for market based approaches to water distribution: a critical assessment for sustainable water management in Spain
Countries in dry climates need to find more efficient water management practices to meet growing water demand. Traditional command-and-control water policies are associated with inefficiencies and have motivated the exploration of market based approaches, including water trading. Water trading has its intellectual origin with the theory of Pareto optimality and the Coase theorem, which asserts that resources will be allocated efficiently given well defined property rights and no transaction costs. This research reviews the case for water trading and finds that, in the Spanish context, institutional innovations and reforms are needed to address externalities in the water market and lower transaction costs before water trading can become viable. Policies based purely on market incentives are unlikely to produce desirable results. The challenge for Spanish policy-makers will be to create the appropriate mix of market incentives and institutional conditions that will promote an efficient distribution of water resources. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.
Volume (Year): 17 (2009)
Issue (Month): 6 ()
|Contact details of provider:|| Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1719|
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.:
- Manuel Martín Rodríguez & Francisco Javier Sáez Fernández & Juan Alberto Aragón Correa & Elías Melchor Ferrer & Noelina Rodríguez Ferrero, 2002. "Evaluation of irrigation projects and water resource management: a methodological proposal," Sustainable Development, John Wiley & Sons, Ltd., vol. 10(2), pages 90-102.
- Rosegrant, Mark W. & Gazmuri S., Renato, 1994.
"Reforming water allocation policy through markets in tradable water rights: lessons from Chile, Mexico, and California,"
EPTD discussion papers
6, International Food Policy Research Institute (IFPRI).
- Mark W Rosegrant & Renato Gazmuri, 1995. "Reforming Water Allocation Policy Through Markets in Tradable Water Rights: Lessons from Chile, Mexico and California," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 32(97), pages 291-316.
- John Freebairn & John Quiggin, 2006.
"Water rights for variable supplies ,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 50(3), pages 295-312, 09.
- Freebairn, John W. & Quiggin, John C., 2006. "Water rights for variable supplies," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(3), September.
- Freebairn, John & Quiggin, John, 2005. "Water Rights for Variable Supplies," Risk and Sustainable Management Group Working Papers 149838, University of Queensland, School of Economics.
- Goetz, Renan U. & Martinez, Yolanda & Rodrigo, Jofre, 2008. "Water allocation by social choice rules: The case of sequential rules," Ecological Economics, Elsevier, vol. 65(2), pages 304-314, April.
- Xuemei Bai & Hidefumi Imura, 2001. "Towards sustainable urban water resource management: a case study in Tianjin, China," Sustainable Development, John Wiley & Sons, Ltd., vol. 9(1), pages 24-35.
When requesting a correction, please mention this item's handle: RePEc:wly:sustdv:v:17:y:2009:i:6:p:357-364. 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: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.