IDEAS home Printed from https://ideas.repec.org/a/spr/waterr/v28y2014i9p2677-2694.html
   My bibliography  Save this article

Stakeholders’ Responses to the Use of Innovative Water Trading Systems in East Anglia, England

Author

Listed:
  • D. Lumbroso
  • C. Twigger-Ross
  • J. Raffensperger
  • J. Harou
  • M. Silcock
  • A. Thompson

Abstract

It is widely recognised that the current abstraction licensing system in England needs to be reformed to meet the challenges of future environmental flow requirements, likely increases in water demands and climate change. The UK Government has committed to the reform of the abstraction regime in England and work is underway, including the Welsh Government, to assess the impacts of different reform options, working closely with stakeholders. International experience reveals that the complexity of water management at a national level lends itself to common principles but ultimately that local solutions are required at a catchment-level to manage such challenges. Historically the number of abstraction licences traded in England is negligible. In the future the trading of abstraction licences and derivative water rights, for example water quotas, could play a key role in improving water use efficiency. This paper describes research that was carried out to add to this evidence base in the Upper Ouse and Bedford Ouse catchment in East Anglia with a number of stakeholders to document their response to two innovative water trading systems which have been termed “improved pair-wise” trading and the “common pool” approach. Improved pair-wise trading would allow for a hierarchy of types of short-term abstraction licence trades. Some trades between specific points in a catchment might be pre-approved if the risks to the environment were deemed acceptable. The common pool approach is based on the trading of water quotas, using “smart market” methods, which enable economic optimisation of market outcomes based on abstractors’ bids subject to realistic hydrological constraints. This method would allow all abstractors to bid into a common pool on a weekly basis to obtain their water. Both methods were demonstrated via two workshops to investigate the barriers and facilitators to water trading in practice. Participants were cautiously interested in the benefits offered by both methods, especially the ability to trade water at short notice. However, for these trading methods to play a key role in the reform of abstraction licensing the abstractors must have sufficient confidence that the underlying methods are sufficiently equitable, reliable and accurate. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • D. Lumbroso & C. Twigger-Ross & J. Raffensperger & J. Harou & M. Silcock & A. Thompson, 2014. "Stakeholders’ Responses to the Use of Innovative Water Trading Systems in East Anglia, England," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 28(9), pages 2677-2694, July.
    • Handle: RePEc:spr:waterr:v:28:y:2014:i:9:p:2677-2694
    DOI: 10.1007/s11269-014-0633-z
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11269-014-0633-z
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11269-014-0633-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. James Murphy & Ariel Dinar & Richard Howitt & Steven Rassenti & Vernon Smith, 2000. "The Design of ``Smart'' Water Market Institutions Using Laboratory Experiments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 17(4), pages 375-394, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cécile Hérivaux & Jean-Daniel Rinaudo & Marielle Montginoul, 2019. "Exploring the Potential of Groundwater Markets in Agriculture: Results of a Participatory Evaluation in Five French Case Studies," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 6(01), pages 1-28, September.
    2. Ting Wang & Yu Liu & Ying Wang & Xinmin Xie & Jinjun You, 2019. "A Multi-Objective and Equilibrium Scheduling Model Based on Water Resources Macro Allocation Scheme," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 33(10), pages 3355-3375, August.
    3. Mu Lin & Di Zhang & Ben Chen & Hang Zheng, 2024. "The Economic Analysis of the Common Pool Method through the HARA Utility Functions," Papers 2408.05194, arXiv.org.

    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. Kristiana Hansen & Jonathan Kaplan & Stephan Kroll, 2014. "Valuing Options in Water Markets: A Laboratory Investigation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 57(1), pages 59-80, January.
    2. John G. Tisdell, 2011. "Water markets in Australia: an experimental analysis of alternative market mechanisms," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(4), pages 500-517, October.
    3. Juchems, Elizabeth M. & Schoengold, Karina & Brozovic, Nicholas, 2013. "Predicting Groundwater Trading Participation In The Upper Republican Natural Resource District," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150511, Agricultural and Applied Economics Association.
    4. James J. Murphy & Ariel Dinar & Richard E. Howitt & Erin Mastrangelo & Stephen J. Rassenti & Vernon L. Smith, 2006. "Mechanisms for Addressing Third-Party Impacts Resulting From Voluntary Water Transfers," Chapters, in: John A. List (ed.), Using Experimental Methods in Environmental and Resource Economics, chapter 5, Edward Elgar Publishing.
    5. Craig D. Broadbent & David S. Brookshire & Don Coursey & Vince Tidwell, 2017. "Futures Contracts in Water Leasing: An Experimental Analysis Using Basin Characteristics of the Rio Grande, NM," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(3), pages 569-594, November.
    6. Suresh P. Sethi & Sushil Gupta & Vipin K. Agrawal & Vijay K. Agrawal, 2022. "Nobel laureates’ contributions to and impacts on operations management," Production and Operations Management, Production and Operations Management Society, vol. 31(12), pages 4283-4303, December.
    7. Raffensperger, John F., 2011. "Matching users' rights to available groundwater," Ecological Economics, Elsevier, vol. 70(6), pages 1041-1050, April.
    8. 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.
    9. Calatrava-Leyva, Javier & Colmenero, Alberto Garrido, 2001. "Analisis del efecto de los mercados de agua sobre el beneficio de las explotaciones, la contaminacion por nitratos y el empleo eventual agrario," Economia Agraria y Recursos Naturales, Spanish Association of Agricultural Economists, vol. 1(02), pages 1-21, December.
    10. Shyama Ratnasiri & Clevo Wilson & Wasantha Athukorala & Maria A. Garcia-Valiñas & Benno Torgler & Robert Gifford, 2018. "Effectiveness of two pricing structures on urban water use and conservation: a quasi-experimental investigation," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 20(3), pages 547-560, July.
    11. Ghosh, Sanchari & Cobourn, Kelly & Elbakidze, Levan, 2013. "Water Banks, Markets, and Prior Appropriation: A Comparison of Water Allocation Instruments in the Eastern Snake River Plain," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150643, Agricultural and Applied Economics Association.
    12. Murphy, James J. & Dinar, Ariel & Howitt, Richard E. & Rassenti, Stephen J. & Smith, Vernon L. & Weinberg, Marca, 2004. "Incorporating Instream Flow Values Into A Water Market," Working Paper Series 14525, University of Massachusetts, Amherst, Department of Resource Economics.
    13. Alberto Garrido, 2007. "Water markets design and evidence from experimental economics," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(3), pages 311-330, November.
    14. Noussair, C.N. & van Soest, D.P., 2014. "Economic Experiments and Environmental Policy : A Review," Other publications TiSEM 5ccc4032-fc1e-453c-9a96-a, Tilburg University, School of Economics and Management.
    15. Hans‐Theo Normann & Roberto Ricciuti, 2009. "Laboratory Experiments For Economic Policy Making," Journal of Economic Surveys, Wiley Blackwell, vol. 23(3), pages 407-432, July.
    16. John F. Raffensperger & Mark W. Milke & E. Grant Read, 2009. "A Deterministic Smart Market Model for Groundwater," Operations Research, INFORMS, vol. 57(6), pages 1333-1346, December.
    17. Tellez Foster, Edgar & Rapoport, Amnon & Dinar, Ariel, 2017. "Groundwater and electricity consumption under alternative subsidies: Evidence from laboratory experiments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 68(C), pages 41-52.
    18. Alberto Garrido, 2007. "Designing Water Markets for Unstable Climatic Conditions: Learning from Experimental Economics," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(3), pages 520-530.
    19. John Raffensperger & Thomas Cochrane, 2010. "A Smart Market for Impervious Cover," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 24(12), pages 3065-3083, September.
    20. Aurora García-Gallego & Nikolaos Georgantzís & Roberto Hernán-González & Praveen Kujal, 2012. "How do Markets Manage Water Resources? An Experiment," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(1), pages 1-23, September.

    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:spr:waterr:v:28:y:2014:i:9:p:2677-2694. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.