IDEAS home Printed from https://ideas.repec.org/a/oup/wbrobs/v14y1999i1p99-116.html
   My bibliography  Save this article

Formal and Informal Markets for Water: Institutions, Performance, and Constraints

Author

Listed:
  • Easter, K William
  • Rosegrant, Mark W
  • Dinar, Ariel

Abstract

Water markets -- either formal or informal -- can be an efficient method for reallocating scarce water supplies. At the same time certain constraints can raise the transaction costs of trading water. This paper reviews the conditions necessary to establish successful water markets, identifies potential problems, and offers mitigating strategies. It also uses examples of several informal and formal water markets already in operation to illustrate these problems and the solutions to them. Copyright 1999 by Oxford University Press.

Suggested Citation

  • Easter, K William & Rosegrant, Mark W & Dinar, Ariel, 1999. "Formal and Informal Markets for Water: Institutions, Performance, and Constraints," The World Bank Research Observer, World Bank, vol. 14(1), pages 99-116, February.
  • Handle: RePEc:oup:wbrobs:v:14:y:1999:i:1:p:99-116
    as

    Download full text from publisher

    File URL: http://www.worldbank.org/research/journals/wbro/obsfeb99/pdf/article5.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marca Weinberg & Catherine L. Kling & James E. Wilen, 1993. "Water Markets and Water Quality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(2), pages 278-291.
    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. Thobani, Mateen, 1997. "Formal Water Markets: Why, When, and How to Introduce Tradable Water Rights," The World Bank Research Observer, World Bank, vol. 12(2), pages 161-179, August.
    4. Meinzen-Dick, Ruth Suseela, 1996. "Groundwater markets in Pakistan: participation and productivity," Research reports 105, International Food Policy Research Institute (IFPRI).
    5. Hearne, Robert R. & William Easter, K., 1997. "The economic and financial gains from water markets in Chile," Agricultural Economics, Blackwell, vol. 15(3), pages 187-199, January.
    6. Smith, Vernon L, 1985. "Experimental Economics: Reply," American Economic Review, American Economic Association, vol. 75(1), pages 264-272, March.
    7. Rosegrant, Mark W. & Binswanger, Hans P., 1994. "Markets in tradable water rights: Potential for efficiency gains in developing country water resource allocation," World Development, Elsevier, vol. 22(11), pages 1613-1625, November.
    Full references (including those not matched with items on IDEAS)

    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. Francesco Prota, 2002. "Water Resources And Water Policies," Working Papers 8_2002, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
    2. Reto Foellmi & Urs Meister, 2012. "Enhancing the Efficiency of Water Supply—Product Market Competition Versus Trade," Journal of Industry, Competition and Trade, Springer, vol. 12(3), pages 299-324, September.
    3. Gomez-Limon, Jose A. & Martinez, Yolanda, 2006. "Multi-criteria modelling of irrigation water market at basin level: A Spanish case study," European Journal of Operational Research, Elsevier, vol. 173(1), pages 313-336, August.
    4. José A. Gómez-Limón & Yolanda Martínez Martínez, 2004. "Multicriteria Modelling of Irrigation Water Market at Basin Level," Economic Working Papers at Centro de Estudios Andaluces E2004/26, Centro de Estudios Andaluces.
    5. Richard Hornbeck & Pinar Keskin, 2015. "Does Agriculture Generate Local Economic Spillovers? Short-Run and Long-Run Evidence from the Ogallala Aquifer," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 192-213, May.
    6. Molden, David & Sakthivadivel, Ramasamy & Samad, Madar & Burton, Martin, 2005. "Phases of river basin development: the need for adaptive institutions," Book Chapters,, International Water Management Institute.
    7. Wichelns, Dennis, 1999. "An economic model of waterlogging and salinization in arid regions," Ecological Economics, Elsevier, vol. 30(3), pages 475-491, September.
    8. Varela-Ortega, Consuelo & M. Sumpsi, Jose & Garrido, Alberto & Blanco, Maria & Iglesias, Eva, 1998. "Water pricing policies, public decision making and farmers' response: implications for water policy," Agricultural Economics, Blackwell, vol. 19(1-2), pages 193-202, September.
    9. Ereney Hadjigeorgalis, 2009. "A Place for Water Markets: Performance and Challenges," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(1), pages 50-67.
    10. Calatrava-Requena, Javier & Garrido, Alberto, 2003. "The Effects Of Spot Water Markets On The Economic Risk Derived From Variable Water Supply," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25885, International Association of Agricultural Economists.
    11. Debaere, Peter & Li, Tianshu, 2017. "The Effects of Water Markets: Evidence from the Rio Grande," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259187, Agricultural and Applied Economics Association.
    12. Hanemann, Michael, 2014. "Property rights and sustainable irrigation—A developed world perspective," Agricultural Water Management, Elsevier, vol. 145(C), pages 5-22.
    13. 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.
    14. Svendsen, Mark (ed.), 2005. "Irrigation and river basin management: options for governance and institutions," IWMI Books, International Water Management Institute, number 138050, January.
    15. Webb, Patrick & Iskandarani, Maria, 1998. "Water Insecurity and the Poor: Issues and Research Needs," Discussion Papers 279785, University of Bonn, Center for Development Research (ZEF).
    16. Ray, I., 2007. "Get the prices right: a model of water prices and irrigation efficiency in Maharashtra, India," IWMI Books, Reports H040603, International Water Management Institute.
    17. Rosegrant, Mark W. & Schleyer, Renato Gazmuri & Yadav, Satya N., 1995. "Water policy for efficient agricultural diversification: market-based approaches," Food Policy, Elsevier, vol. 20(3), pages 203-223, June.
    18. Robert R. Hearne & K. William Easter, 1997. "The economic and financial gains from water markets in Chile," Agricultural Economics, International Association of Agricultural Economists, vol. 15(3), pages 187-199, January.
    19. 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.
    20. Yashodha, Y., 2018. "Bargaining and Contract Choice: Evidence from Informal Groundwater Contracts," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276035, International Association of Agricultural Economists.

    More about this item

    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:oup:wbrobs:v:14:y:1999:i:1:p:99-116. 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: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/wrldbus.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.