Analysis of Stakeholders’ Attitudes towards Water Markets in Southern Spain

Abstract

This research examines stakeholders' perceptions of and preferences for water markets in agriculture, focusing on the likely barriers that might refrain them from participating in such markets. The research was carried out on the Guadalquivir River Basin and involved semi-quantitative methods, combining a structured survey and focus group discussions. A very simple questionnaire was administered to each irrigation stakeholder (i.e., managers, water right holders and non-holders). The main result is that stakeholders will only keep selling water seasonally as the rights remain linked to the land. Nonetheless, some relevant differences among stakeholders were found. Managers seem to be more interested in selling water than farmers. Another important discrepancy was found between water rights holders and non-holders. Access to a water rights system, types of existing infrastructure, and legal and administrative aspects are also important factors influencing the acceptability of water trading in the study area. These results might be helpful to policymakers who are currently evaluating the potential for water markets in Europe and have little observable market data to work with.

Water Markets in Spain: Performance and Challenges

“…In any case, because of the historical and traditional success of lobbying [53], water users belonging to these pressure groups may be less incentivized to participate in water markets, since they could expect to obtain new water rights for free as a consequence of this pressure from lobbyists. In any case, it is worth mentioning that Giannoccaro et al [42] did not find the same evidence in the Guadalquivir River Basin, since they found that potential buyers of water rights would not refrain from buying water to put pressure on obtaining new (free) water rights.…”

“…In any case, there is little evidence about the attitudes and behavior of different stakeholders towards the potential revision of water concessions in Spain. This barrier has been only studied by Giannoccaro et al [42], who find that while more than a half of interviewed stakeholders in the Guadalquivir River Basin were worried that their water right could be questioned by water authorities, this concern could not be confirmed in the case of farmers.…”

“…Giannoccaro et al, and Ortiz and Ceña [42,59,60] show farmers' resistance to trading water in Spain due to both their view of water as a non-tradable common good and the notion that water rights should not be separated from land. Cultural barriers have been largely recognized in other countries [31,56], suggesting that farmers' perceptions and preferences play an essential role in discouraging their participation in water markets.…”

“…Giannoccaro et al [42] show that farmers' willingness to participate in water markets increases for farmers who are better informed and who have previous trading experiences. As a result of the narrowness of water markets in Spain, few farmers have any experience with formal lease contracts or WEC.…”

“…Lack of information and limited trading experience with water markets reduce farmers' willingness to participate in water markets [42]. Some measures are needed to make farmers confident in participating in water markets.…”