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An Integrated Assessment of Water Markets: Australia, Chile, China, South Africa and the USA

Author

Listed:
  • R. Quentin Grafton
  • Clay Landry
  • Gary D. Libecap
  • Sam McGlennon
  • Bob O’Brien

Abstract

The paper provides an integrated framework to assess water markets in terms of their institutional underpinnings and the three ‘pillars’ of integrated water resource management: economic efficiency, equity and environmental sustainability. This framework can be used: (1) to benchmark different water markets; (2) to track performance over time; and (3) to identify ways in which water markets might be adjusted by informed policy makers to achieve desired goals. The framework is used to identify strengths and limitations of water markets in: (1) Australia’s Murray-Darling Basin; (2) Chile (in particular the Limarí Valley); (3) China (in particular, the North); (4) South Africa; and (5) the western United States. It identifies what water markets are currently able to contribute to integrated water resource management, what criteria underpin these markets, and which components of their performance may require further development.

Suggested Citation

  • R. Quentin Grafton & Clay Landry & Gary D. Libecap & Sam McGlennon & Bob O’Brien, 2010. "An Integrated Assessment of Water Markets: Australia, Chile, China, South Africa and the USA," ICER Working Papers 32-2010, ICER - International Centre for Economic Research.
    • Handle: RePEc:icr:wpicer:32-2010
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    References listed on IDEAS

    as
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    Cited by:

    1. Francis Carlo Petterini, 2018. "The Likelihood Of A Water Market In Brazil," Anais do XLIV Encontro Nacional de Economia [Proceedings of the 44th Brazilian Economics Meeting] 190, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    2. Yerushalmi, Erez, 2012. "Measuring the administrative water allocation mechanism and agricultural amenities," Economic Research Papers 270633, University of Warwick - Department of Economics.
    3. Xiang-nan Chen & Feng-ping Wu & Fang Li & Yue Zhao & Xia Xu, 2021. "Analysis of Tradable Water Volumes of Industry in Water-Rich Areas of China: A Case Study of Changsha City," IJERPH, MDPI, vol. 18(2), pages 1-20, January.
    4. Alexandros Maziotis & Elisa Calliari & Jaroslav Mysiak, 2013. "Robust Institutions for Sustainable Water Markets: A Survey of the Literature and the Way Forward," Working Papers 2013.58, Fondazione Eni Enrico Mattei.
    5. Anahí Urquiza & Marco Billi, 2020. "Water markets and social–ecological resilience to water stress in the context of climate change: an analysis of the Limarí Basin, Chile," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(3), pages 1929-1951, March.
    6. repec:ags:ubzefd:148054 is not listed on IDEAS
    7. Nemati, Mehdi & Dinar, Ariel, 2023. "Teaching Principles of Water Economics to Non-Economists: Lessons from California," Applied Economics Teaching Resources (AETR), Agricultural and Applied Economics Association, vol. 5(2), March.

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    More about this item

    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
    • N16 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Latin America; Caribbean
    • N5 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries
    • N92 - Economic History - - Regional and Urban History - - - U.S.; Canada: 1913-
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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