IDEAS home Printed from https://ideas.repec.org/p/ags/aaea03/22099.html
   My bibliography  Save this paper

Stopping The Drain: Third-Party Resistance To Water Marketing In California

Author

Listed:
  • Hanak, Ellen

Abstract

Growth of the water market since the early 1990s has generated controversy in California's source regions over two types of transfers - those drawing on native groundwater reserves and those resulting from crop idling. Given incomplete state-level protections for third parties who may suffer adverse effects of water sales, local authorities have responded with their own measures. In particular, many rural counties have adopted ordinances restricting groundwater exports. Some communities have restricted farmers' right to fallow land for the market. Original data on water market flows and local ordinances are used to analyze the impact of county trade restrictions on water sales and water exports. County ordinances have reduced water exports by nearly20 percent and water sales by nearly 15 percent since the mid 1990s and have shifted some exports to local buyers. Several policy options are available for mitigating third-party effects in less trade-restrictive ways. For groundwater protection, a more efficient solution lies in the establishment of local groundwater management systems. Recent test cases will provide useful guidance on the practical difficulties of implementing a transfer tax to compensate communities for the impacts of fallowing.

Suggested Citation

  • Hanak, Ellen, 2003. "Stopping The Drain: Third-Party Resistance To Water Marketing In California," 2003 Annual meeting, July 27-30, Montreal, Canada 22099, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea03:22099
    DOI: 10.22004/ag.econ.22099
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/22099/files/sp03ha03.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.22099?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
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Arellano, Manuel & Honore, Bo, 2001. "Panel data models: some recent developments," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 53, pages 3229-3296, Elsevier.
    3. Burness, H. Stuart & Brill, Thomas C., 2001. "The role for policy in common pool groundwater use," Resource and Energy Economics, Elsevier, vol. 23(1), pages 19-40, January.
    4. Charles W. Howe & Jeffrey K. Lazo & Kenneth R. Weber, 1990. "The Economic Impacts of Agriculture-to-Urban Water Transfers on the Area of Origin: A Case Study of the Arkansas River Valley in Colorado," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(5), pages 1200-1204.
    5. Provencher Bill & Burt Oscar, 1993. "The Externalities Associated with the Common Property Exploitation of Groundwater," Journal of Environmental Economics and Management, Elsevier, vol. 24(2), pages 139-158, March.
    6. Howitt, Richard E., 1994. "Empirical analysis of water market institutions: The 1991 California water market," Resource and Energy Economics, Elsevier, vol. 16(4), pages 357-371, November.
    7. Daniel Bromley, 1992. "The commons, common property, and environmental policy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 2(1), pages 1-17, January.
    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. 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.

    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. Ellen Hanak, 2005. "Stopping the Drain: Third‐party Responses to California's Water Market," Contemporary Economic Policy, Western Economic Association International, vol. 23(1), pages 59-77, January.
    2. Alain Ayong Le Kama & Agnès Tomini, 2012. "Water Conservation versus Soil Salinity Control," Working Papers hal-04141151, HAL.
    3. Hansen, Kristiana, 2010. "Water Markets and Water Rights Markets in the Western United States," Western Economics Forum, Western Agricultural Economics Association, vol. 9(2), pages 1-10.
    4. Phoebe Koundouri, 2004. "Current Issues in the Economics of Groundwater Resource Management," Journal of Economic Surveys, Wiley Blackwell, vol. 18(5), pages 703-740, December.
    5. Jedidiah Brewer & Robert Glennon & Alan Ker & Gary Libecap, 2007. "Water Markets in the West: Prices, Trading, and Contractual Forms," ICER Working Papers 30-2007, ICER - International Centre for Economic Research.
    6. Eric C. Edwards, 2016. "What Lies Beneath? Aquifer Heterogeneity and the Economics of Groundwater Management," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(2), pages 453-491.
    7. Brozovic, Nicholas & Sunding, David L. & Zilberman, David, 2004. "Measuring The Gains From Management Of Spatially Heterogeneous Resources: The Case Of Groundwater," 2004 Annual meeting, August 1-4, Denver, CO 20240, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Knapp, Keith C. & Franklin, Bradley, 2012. "Sustainability Economics of Groundwater Usage and Management," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124959, Agricultural and Applied Economics Association.
    9. Alfonso Expósito, 2019. "Valuing Households’ Willingness to Pay for Water Transfers from the Irrigation Sector: A Case Study of the City of Seville (Southern Spain)," Sustainability, MDPI, vol. 11(24), pages 1-18, December.
    10. Mark T. Kanazawa, 2019. "Transaction Costs in Water Transfers: The issue of local control," Working Papers 2019-01, Carleton College, Department of Economics.
    11. Tahir Andrabi & Jishnu Das & Asim Ijaz Khwaja & Tristan Zajonc, 2011. "Do Value-Added Estimates Add Value? Accounting for Learning Dynamics," American Economic Journal: Applied Economics, American Economic Association, vol. 3(3), pages 29-54, July.
    12. Carrión-Flores, Carmen E. & Innes, Robert, 2010. "Environmental innovation and environmental performance," Journal of Environmental Economics and Management, Elsevier, vol. 59(1), pages 27-42, January.
    13. Cavit Pakel & Neil Shephard & Kevin Sheppard, 2009. "Nuisance parameters, composite likelihoods and a panel of GARCH models," Economics Papers 2009-W12, Economics Group, Nuffield College, University of Oxford.
    14. Erin Bunting & Jessica Steele & Eric Keys & Shylock Muyengwa & Brian Child & Jane Southworth, 2013. "Local Perception of Risk to Livelihoods in the Semi-Arid Landscape of Southern Africa," Land, MDPI, vol. 2(2), pages 1-27, May.
    15. Iván Fernández-Val & Martin Weidner, 2018. "Fixed Effects Estimation of Large-TPanel Data Models," Annual Review of Economics, Annual Reviews, vol. 10(1), pages 109-138, August.
    16. Ichimura, Hidehiko & Todd, Petra E., 2007. "Implementing Nonparametric and Semiparametric Estimators," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 6, chapter 74, Elsevier.
    17. Pfeiffer, Lisa & Lin, C.-Y. Cynthia, 2012. "Groundwater pumping and spatial externalities in agriculture," Journal of Environmental Economics and Management, Elsevier, vol. 64(1), pages 16-30.
    18. Ben Groom & Tim Swanson, 2003. "Missing Markets and Redundant Reservoirs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(1), pages 125-144, September.
    19. Hoderlein, Stefan & White, Halbert, 2012. "Nonparametric identification in nonseparable panel data models with generalized fixed effects," Journal of Econometrics, Elsevier, vol. 168(2), pages 300-314.
    20. Gani, Azmat & Scrimgeour, Frank, 2014. "Modeling governance and water pollution using the institutional ecological economic framework," Economic Modelling, Elsevier, vol. 42(C), pages 363-372.

    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    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:ags:aaea03:22099. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.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.