The paper examines the influence of factor price risk on factor-use efficiency through the adoption of conservation technology. The effect of a mean-preserving increase in factor price risk on optimal input-use efficiency is shown to be conditional on the own-price elasticity of factor use...

In response to the severe California drought, in April 2015, Governor Jerry Brown issued an executive order mandating statewide reductions in water use. The mandate aimed to reduce the amount of water consumed statewide in urban areas by 25% from 2013 levels. The State Water Resources Control...

Since the 1970s, supply augmentation strategies to meet water needs have waned, and governments have increasingly focused on demand management measures, including voluntary water transfers. Water demands have also changed as expanding urban growth, changes in agriculture, and increasing concern...

Water trading is a potential means to improve the productivity of developed water supplies and reconcile competing uses. Economic theory suggests that markets evolve in response to changes in supply and demand. This prediction is at odds with observed disparities in the pace of market...