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...

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...

Farmers are well known to be risk-averse. Although a considerable literature has focused on the role water markets play to allocate water more efficiently, none has explicitly studied the risk management role water markets play in irrigators’ decision making. We used a two-step empirical...

The flows of the Rio Conchos are of vital economic importance not only to the agricultural sector in the Mexican side of the Rio Grande basin but also for meeting Mexico’s obligation to deliver water to the United States. During the previous decade, a severe drought dramatically decreased the...

Water markets and associated allocation policy reforms have struggled to achieve their intended goals in many water-stressed rivers, in part due to the institutional friction imposed by transition and transaction costs. This paper elaborates a transaction costs analysis framework to examine the...

Water is critical not only to life, but also to economic growth and environmental outcomes. This article examines how water in Australia is currently allocated and used, and explores some of the consequences of current water management arrangements.

The United States and Mexico recently resolved a decade-old water dispute that required Mexico to repay the accumulated water debt within one year. A Coasian analysis estimates the social welfare gains attainable to each country under an alternative debt repayment scheme that allows repayment...

When water entitlement and water sharing systems are mis-specified, that is specified in amanner that lacks hydrological integrity, inefficient investment and water use is the result.Using Australia's Murray Darling Basin as an example, this paper attempts to reveal theeconomic consequences of...

Water availability in semiarid regions usually exhibits patterns of extreme variability. Even in intensively controlled basins, some users are subject to low levels of water reliability, and more vulnerable to periods of extreme scarcity. To reduce their risk exposure more flexible instruments,...

Many of the import competing sectors in Moroccan agriculture are protected while water in irrigated agriculture is priced below its marginal value product. Establishing a water market in this pre-trade reformenvironment can be welfare decreasing. Further, as the shadow price of water is...