IDEAS home Printed from https://ideas.repec.org/p/ags/aare02/125076.html
   My bibliography  Save this paper

Transaction Costs and Welfare in the Permanent Water Market in NSW

Author

Listed:
  • Crase, Lin
  • Dollery, Brian
  • Lockwood, Michael

Abstract

Many economists and policy makers have begun to question the efficacy of water reforms that rely on markets as the principal mechanism for allocating the resource to its highest value use. One of the principal concerns in this regard has been the relative paucity of permanent trades despite ex ante analyses that have identified substantial and quantifiable gains. This phenomenon has been attributed to the transaction costs pertaining to deals in the permanent water market. Whilst some empirical evidence is now emerging on the quantum of these transaction costs, only limited attention has been given to the broader welfare implications of policies that might alter these costs. This paper examines the welfare implications of the transaction costs in the market for permanent water entitlements in NSW by employing a threshold valuation approach. Drawing upon empirical estimates of transaction costs by Crase et al. (2001), choice data are manipulated to provide estimates of foregone market surplus as the foundation for establishing threshold environmental values.

Suggested Citation

  • Crase, Lin & Dollery, Brian & Lockwood, Michael, 2002. "Transaction Costs and Welfare in the Permanent Water Market in NSW," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 125076, Australian Agricultural and Resource Economics Society.
  • Handle: RePEc:ags:aare02:125076
    DOI: 10.22004/ag.econ.125076
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/125076/files/Crase.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.22004/ag.econ.125076?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. Malcolm Rutherford, 2001. "Institutional Economics: Then and Now," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 173-194, Summer.
    2. Blamey, Russell K. & Gordon, Jenny & Chapman, Ross, 1999. "Choice modelling: assessing the environmental values of water supply options," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 43(3), pages 1-21, September.
    3. Ray Challen, 2000. "Institutions, Transaction Costs and Environmental Policy," Books, Edward Elgar Publishing, number 1961.
    4. Rutherford,Malcolm, 1994. "Institutions in Economics," Cambridge Books, Cambridge University Press, number 9780521451895.
    5. Dahlman, Carl J, 1979. "The Problem of Externality," Journal of Law and Economics, University of Chicago Press, vol. 22(1), pages 141-162, April.
    6. Challen, Ray & Schilizzi, Steven, 1999. "History, Statics and Options: Transaction Costs in Institutional Change for Water Resources," 1999 Conference (43th), January 20-22, 1999, Christchurch, New Zealand 123793, Australian Agricultural and Resource Economics Society.
    7. Rutherford,Malcolm, 1996. "Institutions in Economics," Cambridge Books, Cambridge University Press, number 9780521574471.
    8. Crase, Lin & O'Reilly, Leo & Dollery, Brian, 2000. "Water markets as a vehicle for water reform: the case of New South Wales," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(2), pages 1-23.
    9. Challen, Ray & Petch, Anthony, 1997. "Price Determination and Behaviour in the Market for Irrigation Water in South Australia," 1997 Conference (41st), January 22-24, 1997, Gold Coast, Australia 135740, Australian Agricultural and Resource Economics Society.
    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. Crase, Lin & Dollery, Brian & Lockwood, Michael, 2001. "Towards an Understanding of Static Transaction Costs in the NSW Permanent Water Market: An Application of Choice Modelling," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125588, Australian Agricultural and Resource Economics Society.
    2. Mauricio G. Villena & Marcelo J. Villena, 2004. "Evolutionary Game Theory and Thorstein Veblen’s Evolutionary Economics: Is EGT Veblenian?," Journal of Economic Issues, Taylor & Francis Journals, vol. 38(3), pages 585-610, September.
    3. Elias Khalil, 1999. "Institutions, Naturalism and Evolution," Review of Political Economy, Taylor & Francis Journals, vol. 11(1), pages 61-81.
    4. Gonzalo Caballero, 2004. "Instituciones e historia económica: enfoques y teorías institucionales," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 6(10), pages 135-157, January-J.
    5. Viktor Vanberg, 1997. "Institutional Evolution through Purposeful Selection: The Constitutional Economics of John R. Commons," Constitutional Political Economy, Springer, vol. 8(2), pages 105-122, June.
    6. Sandra Tavares Silva & Aurora Amelia Castro Teixeira & Mário Rui Silva, 2004. "Economics of the Firm and Economic Growth. An hybrid theoretical framework of analysis," FEP Working Papers 158, Universidade do Porto, Faculdade de Economia do Porto.
    7. Hüsnü BİLİR, 2018. "Commons ve Mitchell’in “İktisat” ve “Birey” Anlayışları," Sosyoekonomi Journal, Sosyoekonomi Society, issue 26(37).
    8. Beata Woźniak-Jęchorek, 2013. "Struktura rynku pracy w świetle ekonomii instytucjonalnej," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 9, pages 5-27.
    9. Angela Ambrosino & Magda Fontana & Anna Azzurra Gigante, 2018. "Shifting Boundaries In Economics: The Institutional Cognitive Strand And The Future Of Institutional Economics," Journal of Economic Surveys, Wiley Blackwell, vol. 32(3), pages 767-791, July.
    10. Duarte N. Leite & Sandra T. Silva & Oscar Afonso, 2014. "Institutions, Economics And The Development Quest," Journal of Economic Surveys, Wiley Blackwell, vol. 28(3), pages 491-515, July.
    11. Gagliardi, Francesca, 2008. "Institutions and economic change: A critical survey of the new institutional approaches and empirical evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(1), pages 416-443, February.
    12. Geoffrey M. Hodgson, 2012. "Veblen, Commons and the Theory of the Firm," Chapters, in: Michael Dietrich & Jackie Krafft (ed.), Handbook on the Economics and Theory of the Firm, chapter 5, Edward Elgar Publishing.
    13. Luis Alfonso Dau & Aya S. Chacar & Marjorie A. Lyles & Jiatao Li, 2022. "Informal institutions and international business: Toward an integrative research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 985-1010, August.
    14. Jean-Baptiste Fleury & Alain Marciano, 2022. "Methodological Individualism and the Foundations of the "Law and Economics" movement," Post-Print hal-03820441, HAL.
    15. Giulio Palermo, 2000. "Economic Power and the Firm in New Institutional Economics: Two Conflicting Problems," Journal of Economic Issues, Taylor & Francis Journals, vol. 34(3), pages 573-601, September.
    16. Peter Boettke & Christopher Coyne & Peter Leeson & Frederic Sautet, 2005. "The New Comparative Political Economy," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 18(3), pages 281-304, December.
    17. Germán Burgos Silva, 2002. "Derecho y desarrollo económico: de la teoría de la modernización a la Nueva Economía Institucional," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 4(7), pages 174-199, July-Dece.
    18. Robert Ekelund & Robert Tollison, 1997. "On neoinstitutional theory and preclassical economies: mercantilism revisited," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 4(3), pages 375-399.
    19. Brian Dollery & Joe Wallis, 2000. "A Note on the Coherence of New Public Management as a Managerial Philosophy," International Review of Public Administration, Taylor & Francis Journals, vol. 5(1), pages 81-91, June.
    20. Robert Ley, 2001. "The political economy of Gunnar Myrdal James Angresano Edward Elgar, 1997, 197 pp," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 29(2), pages 232-239, June.

    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:aare02:125076. 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/aaresea.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.