IDEAS home Printed from https://ideas.repec.org/p/ags/umaesp/13864.html
   My bibliography  Save this paper

Water Markets And Decentralized Water Resources Management

Author

Listed:
  • Easter, K. William
  • Hearne, Robert R.

Abstract

Because of its importance and the perceived inability of private sector sources to meet water demands, many countries have depended on the public sector to provide water services for their populations. Yet this has resulted in many inefficient public water projects and in inadequate supplies of good quality and reliable water. Decentralization of water management, including the use of water markets, cannot solve all of the water problems, but it can improve the efficiency of water allocation. When given adequate responsibility and authority, water user associations have effectively taken over water management activities at a savings to tax payers. Moreover, water markets add the potential benefit of improving water efficiency within the sector as well as providing a mechanism for reallocating water among sectors. The key question involves developing innovative mechanisms for reducing the transaction costs of organizing water users and of making water trades. Water rights need to be established which are recorded, tradeable, enforceable, and separate from land if markets are to operate effectively. Also, institutions are needed that effectively resolve conflicts over water rights, including third party impacts and water quality concerns.

Suggested Citation

  • Easter, K. William & Hearne, Robert R., 1994. "Water Markets And Decentralized Water Resources Management," Staff Papers 13864, University of Minnesota, Department of Applied Economics.
    • Handle: RePEc:ags:umaesp:13864
    DOI: 10.22004/ag.econ.13864
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/13864/files/p94-24.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.13864?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Alberta H. Charney & Gary C. Woodard, 1990. "Socioeconomic Impacts of Water Farming on Rural Areas of Origin in Arizona," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(5), pages 1193-1199.
    2. Palanisami, K. & Easter, K. William, 1991. "Hydro-Economic Interaction between Tank Storage and Groundwater Recharge," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 46(2), April.
    3. Bonnie G. Colby, 1990. "Transactions Costs and Efficiency in Western Water Allocation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(5), pages 1184-1192.
    4. Easter, K. William, 1990. "Economic Failure Plagues Developing Countries' Irrigation: An Assurance Problem," Staff Papers 13337, University of Minnesota, Department of Applied Economics.
    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. Thomas M Fullerton Jr, 2004. "Recent Trends in Border Economics," Urban/Regional 0405001, University Library of Munich, Germany.
    2. 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.
    3. Easter, K. William, 1996. "MARKET APPROACHES TO WATER ALLOCATION: WHAT HAVE WE LEARNED?; Proceedings of the Fifth Joint Conference on Agriculture, Food, and the Environment, June 17-18, 1996, Padova, Italy," Working Papers 14428, University of Minnesota, Center for International Food and Agricultural Policy.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Jedidiah Brewer & Robert Glennon & Alan Ker & Gary Libecap, 2008. "2006 Presidential Address Water Markets In The West: Prices, Trading, And Contractual Forms," Economic Inquiry, Western Economic Association International, vol. 46(2), pages 91-112, April.
    3. Easter, K. William, 1996. "MARKET APPROACHES TO WATER ALLOCATION: WHAT HAVE WE LEARNED?; Proceedings of the Fifth Joint Conference on Agriculture, Food, and the Environment, June 17-18, 1996, Padova, Italy," Working Papers 14428, University of Minnesota, Center for International Food and Agricultural Policy.
    4. Kris Toll & Craig D. Broadbent & Quinn Beeson, 2019. "Determinants of Water Market Prices in the Western United States," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 5(03), pages 1-21, July.
    5. Jeffrey A. Edwards & Tara R. Wade & Mark L. Burkey & R. Gary Pumphrey, 2014. "Forecasting the Public's Acceptability of Municipal Water Regulation and Price Rationing for Communities on the Ogallala Aquifer," Journal of Economic Insight, Missouri Valley Economic Association, vol. 40(1), pages 1-30.
    6. McCann, Laura M.J. & Easter, K. William, 1998. "Estimating Transaction Costs Of Alternative Policies To Reduce Phosphorous Pollution In The Minnesota River," Staff Papers 13919, University of Minnesota, Department of Applied Economics.
    7. GP Green & JP O'Connor, 2001. "Water Banking And Restoration Of Endangered Species Habitat: An Application To The Snake River," Contemporary Economic Policy, Western Economic Association International, vol. 19(2), pages 225-237, April.
    8. Ereney Hadjigeorgalis, 2004. "Comerciando con Incertidumbre: Los Mercados de Agua en la Agricultura Chilena," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 41(122), pages 3-34.
    9. Kathleen Segerson & Catherine L. Kling & Nancy E. Bockstael, 2022. "Contributions of women at the intersection of agricultural economics and environmental and natural resource economics," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(1), pages 38-53, March.
    10. Deng, Xiaohong & Xu, Zhongmin & Song, Xiaoyu & Zhou, Jian, 2017. "Transaction costs associated with agricultural water trading in the Heihe River Basin, Northwest China," Agricultural Water Management, Elsevier, vol. 186(C), pages 29-39.
    11. James H. Skurray & Ram Pandit & David J. Pannell, 2013. "Institutional impediments to groundwater trading: the case of the Gnangara groundwater system of Western Australia," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 56(7), pages 1046-1072, September.
    12. Whited, Melissa, 2010. "Economic Impacts of Irrigation Water Transfers on Uvalde County, Texas," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 40(2), pages 1-11.
    13. Elbakidze, Levan & Vinson, Hannah & Cobourn, Kelly & Taylor, R.Garth, 2018. "Efficient groundwater allocation and binding hydrologic externalities," Resource and Energy Economics, Elsevier, vol. 53(C), pages 147-161.
    14. Villinski, Michele T., 2003. "A Methodology For Valuing Multiple-Exercise Option Contracts For Water," Working Papers 14379, University of Minnesota, Center for International Food and Agricultural Policy.
    15. Mai, Thanh & Mushtaq, Shahbaz & Loch, Adam & Reardon-Smith, K. & An-Vo, Duc-Anh, 2019. "A systems thinking approach to water trade: Finding leverage for sustainable development," Land Use Policy, Elsevier, vol. 82(C), pages 595-608.
    16. Jedidiah Brewer & Robert Glennon & Alan Ker & Gary Libecap, 2007. "Water Markets in the West: Prices, Trading, and Contractual Forms," ICER Working Papers 30-2007, ICER - International Centre for Economic Research.
    17. Krutilla Kerry & Alexeev Alexander, 2012. "The Normative Implications of Political Decision-Making for Benefit-Cost Analysis," Journal of Benefit-Cost Analysis, De Gruyter, vol. 3(2), pages 1-36, May.
    18. Willett, Keith D. & Ghosh, Sanchari, 2018. "An alternative market framework for water transfers when third party externalities dominate," 2018 Annual Meeting, August 5-7, Washington, D.C. 274287, Agricultural and Applied Economics Association.
    19. McCann, Laura M.J., 1999. "Induced Institutional Innovation in Response to Transaction Costs: The Case of the National Native Title Tribunal," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123852, Australian Agricultural and Resource Economics Society.
    20. Mark Kanazawa, 2003. "Origins of Common-Law Restrictions on Water Transfers: Groundwater Law in Nineteenth-Century California," The Journal of Legal Studies, University of Chicago Press, vol. 32(1), pages 153-180, January.

    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:umaesp:13864. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/daumnus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.