IDEAS home Printed from https://ideas.repec.org/p/ags/aare99/123793.html
   My bibliography  Save this paper

History, Statics and Options: Transaction Costs in Institutional Change for Water Resources

Author

Listed:
  • Challen, Ray
  • Schilizzi, Steven

Abstract

Institutions for use of natural resources, including water resources, typically encompass assignments of property rights to various levels of government, private entities and commonproperty organisations. Institutional reform often involves a change in these property rights, such as devolution of property rights from governments to private resource users. In institutional economics it is generally accepted that institutional change occurs to reduce transaction costs incurred in economic exchanges and regulatory actions. In many situations, including reform of institutions for use of water resources, there are two additional parameters that affect, or should affect, decisions for institutional change: (i) constraints arising from institutional history; and (ii) option values associated with some institutional structures under conditions of uncertainty about the future. In this paper, a transaction-cost framework is used to incorporate these parameters into decision-making for institutional change. Institutional reform for water use in the Murray-Darling Basin is used as an illustrative example.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:aare99:123793
    DOI: 10.22004/ag.econ.123793
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/123793/files/Challen.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.123793?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. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    2. Stevenson,Glenn G., 1991. "Common Property Economics," Cambridge Books, Cambridge University Press, number 9780521384414.
    3. Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74(2), pages 132-132.
    4. Ronald C. Griffin, 1991. "The Welfare Analytics of Transaction Costs, Externalities, and Institutional Choice," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 73(3), pages 601-614.
    5. Kenneth J. Arrow & Anthony C. Fisher, 1974. "Environmental Preservation, Uncertainty, and Irreversibility," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 88(2), pages 312-319.
    6. K. K. Lancaster, 2010. "A New Approach to Consumer Theory," Levine's Working Paper Archive 1385, David K. Levine.
    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. 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. Crase, Lin & Khosroshahi, Saeideh & Cooper, Bethany, 2020. "Hydrology, topography and demography matter: Why care needs to be exercised when assessing water prices and regulation and the extent to which they conform with best practice," Utilities Policy, Elsevier, vol. 62(C).
    3. 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.

    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. Anderson, Simon P. & Foros, Øystein & Kind, Hans Jarle, 2012. "Product quality, competition, and multi-purchasing," Discussion Papers 2012/9, Norwegian School of Economics, Department of Business and Management Science.
    2. Veneziani, Mario & Sckokai, Paolo & Moro, Daniele, 2012. "Consumers’ willingness to pay for a functional food," 2012 First Congress, June 4-5, 2012, Trento, Italy 124101, Italian Association of Agricultural and Applied Economics (AIEAA).
    3. Ortega, David L. & Wang, H. Holly & Wu, Laping & Olynk, Nicole J., 2011. "Modeling heterogeneity in consumer preferences for select food safety attributes in China," Food Policy, Elsevier, vol. 36(2), pages 318-324, April.
    4. Katrak, Homi, 1998. "Economic analyses of Industrial Research Institutes in developing countries: the Indian experience," Research Policy, Elsevier, vol. 27(4), pages 337-347, August.
    5. Ondřej Vojáček, 2011. "K pojetí preferencí v ekonomickém myšlení [Preference Dilemma in Economics]," Politická ekonomie, Prague University of Economics and Business, vol. 2011(3), pages 345-358.
    6. Amir, Shmuel, 1995. "Welfare maximization in economic theory: Another viewpoint," Structural Change and Economic Dynamics, Elsevier, vol. 6(3), pages 359-376, August.
    7. Timothy K.M. Beatty, 2007. "Recovering the Shadow Value of Nutrients," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(1), pages 52-62.
    8. Knittel Christopher R. & Stango Victor, 2008. "Incompatibility, Product Attributes and Consumer Welfare: Evidence from ATMs," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-42, January.
    9. Loureiro, Maria L. & Umberger, Wendy J., 2007. "A choice experiment model for beef: What US consumer responses tell us about relative preferences for food safety, country-of-origin labeling and traceability," Food Policy, Elsevier, vol. 32(4), pages 496-514, August.
    10. Veisten, Knut, 2007. "Contingent valuation controversies: Philosophic debates about economic theory," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(2), pages 204-232, April.
    11. Tisdell, Clement A., 2012. "Ecotourism Experiences Promoting Conservation and Changing Economic Values: The Case of Mon Repos Turtles," Economics, Ecology and Environment Working Papers 125209, University of Queensland, School of Economics.
    12. Zhang, Xiaohui & Zhao, Xueyan & Harris, Anthony, 2009. "Chronic diseases and labour force participation in Australia," Journal of Health Economics, Elsevier, vol. 28(1), pages 91-108, January.
    13. Guggenberger, Patrik & Kaul, Ashok & Kolmar, Martin, 2002. "Efficiency properties of labor taxation in a spatial model of restricted labor mobility," Regional Science and Urban Economics, Elsevier, vol. 32(4), pages 447-473, July.
    14. F Alpizar & F Carlsson & P Martinsson, 2003. "Using Choice Experiments for Non-Market Valuation," Economic Issues Journal Articles, Economic Issues, vol. 8(1), pages 83-110, March.
    15. Aguilar, Francisco X., 2009. "Spatial econometric analysis of location drivers in a renewable resource-based industry: The U.S. South Lumber Industry," Forest Policy and Economics, Elsevier, vol. 11(3), pages 184-193, May.
    16. Marva Stithou & Yiannis Kountouris & Phoebe Koundouri, 2011. "A Choice Experiments Application in Transport Infrastructure: A case study on travel time savings, accidents and pollution reduction," DEOS Working Papers 1116, Athens University of Economics and Business.
    17. Akpalu, Wisdom & Dasmani, Isaac & Aglobitse, Peter B., 2011. "Demand for cooking fuels in a developing country: To what extent do taste and preferences matter?," Energy Policy, Elsevier, vol. 39(10), pages 6525-6531, October.
    18. Witte, Kristof De & Geys, Benny, 2011. "Evaluating efficient public good provision: Theory and evidence from a generalised conditional efficiency model for public libraries," Journal of Urban Economics, Elsevier, vol. 69(3), pages 319-327, May.
    19. Frenken, Koen & Leydesdorff, Loet, 2000. "Scaling trajectories in civil aircraft (1913-1997)," Research Policy, Elsevier, vol. 29(3), pages 331-348, March.
    20. Anastassiadis, Friederike & Liebe, Ulf & Musshoff, Oliver, 2012. "Finanzielle Flexibilität In Landwirtschaftlichen Investitionsentscheidungen: Ein Discrete Choice Experiment," 52nd Annual Conference, Stuttgart, Germany, September 26-28, 2012 137142, German Association of Agricultural Economists (GEWISOLA).

    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:aare99:123793. 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.