IDEAS home Printed from https://ideas.repec.org/p/ags/aare04/58400.html
   My bibliography  Save this paper

The Problems of Analysing Markets for Irrigation Water

Author

Listed:
  • Davidson, Brian

Abstract

The view that the price of water is too low and that water does not flow to its highest value end use, have led many analysts to conclude that a market for water, in which price can adjust to accommodate changes in the supply and demand for the product, is essential. However, this solution assumes that the market could approach something close to perfect competition, purely by making minor changes within the existing regime of property rights. In this paper it is argued that problems evident in this market stem from a multitude of market failures and characteristics that are particular to it. To understand this case more fully it is necessary to come to terms with the theoretical formulations of the market for water and the practical difficulties associated with it. It is concluded that it may not be possible to obtain an optimal solution in the market for water, as it currently exists. Thus, the solutions to the problems evident in the water market may need to rely on controlling quantity of water that flows through it, even though price is an ideal economiser of information.

Suggested Citation

  • Davidson, Brian, 2004. "The Problems of Analysing Markets for Irrigation Water," 2004 Conference (48th), February 11-13, 2004, Melbourne, Australia 58400, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare04:58400
    as

    Download full text from publisher

    File URL: http://purl.umn.edu/58400
    Download Restriction: no

    References listed on IDEAS

    as
    1. Geoff Edwards, 2003. "Water Policy: Setting the Scene," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 36(2), pages 193-202.
    2. M. D. Young & J. C. McColl, 2003. "Robust Reform: The Case for a New Water Entitlement System for Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 36(2), pages 225-234.
    3. John Freebairn, 2003. "Principles for the Allocation of Scarce Water," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 36(2), pages 203-212.
    4. Crase, Lin & O'Reilly, Leo & Dollery, Brian, 2000. "Water markets as a vehicle for water reform: the case of New South Wales," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(2), June.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    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:ags:aare04:58400. 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: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/aaresea.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.