Risk and uncertainty in a water market will generate trading patterns that differ from those expected under conditions of perfect foresight. Although trades will occur based on differences in VMPs of water in both markets, they will also be generated by differences in risk. Some farmers will...

The 2006 United Nations Human Development Report paints a dismal picture of global water scarcity and the increasing pressures on agricultural water supplies. While it acknowledges that demand-side policies are more effective than supply-side approaches, it remains skeptical of water markets as...

The 2006 United Nations Human Development Report paints a dismal picture of global water scarcity and the increasing pressures on agricultural water supplies. While it acknowledges that demand-side policies are more effective than supply-side approaches, it remains skeptical of water markets as...

This research examines the effect of uncertainty o­n farmers’ water trading decisions in the Limarí River basin. The results show that farmers who face greater risks from water supply shortfalls, such as perennial crop farmers, will not participate in spo