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Water Markets And Third Party Effects

  • Bourgeon, Jean-Marc
  • Easter, K. William
  • Smith, Rodney B.W.

This paper examines the potential effects of water trading on the service sector of a rural economy. The economy earns income producing an irrigated agricultural product and a non-agricultural (service) good, and possibly by selling water. Among other things, we show when none of the water income leaves the region (no income flight), water trading enhances regional welfare. We then show if income flight is "large enough", water trading has the opposite effect. Albeit, even under income flight, if the income flight problem is not too serious, water trading will enhance regional welfare.

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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2004 Annual meeting, August 1-4, Denver, CO with number 20231.

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Date of creation: 2004
Date of revision:
Handle: RePEc:ags:aaea04:20231
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