The Potential for Water Market Efficiency When Instream Flows Have Value

Griffin, Ronald C.; Hsu, Shih‐Hsun

doi:10.2307/1242913

Cited by 57 publications

(46 citation statements)

References 4 publications

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“…The introduction of market mechanisms to achieve efficiency when allocating between consumptive use and in-stream flow has also been examined [e.g., Griffin and Hsu, 1993;Murphy et al, 2008]. In environments of fully committed water resources (such as in the Colorado basin and Southern California), water markets have been shown to effectively reallocate water between competing users [Bjornlund, 2003].…”

Section: Prior Researchmentioning

confidence: 99%

Past and future water conflicts in the Upper Klamath Basin: An economic appraisal

Boehlert¹,

Jaeger

2010

Water Resources Research

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[1] The water conflict in the Upper Klamath Basin typifies the growing competition between agricultural and environmental water uses. In 2001, drought conditions triggered Endangered Species Act-related requirements that curtailed irrigation diversions to the Klamath Reclamation Project, costing irrigators tens of millions of dollars. Although this event has significantly elevated the perceived risk of future economic catastrophe in the basin (and therefore the level of conflict among water users), several key changes related to water availability have occurred since 2001. These changes include reduced ESA requirements and increased groundwater pumping capacity, which have lowered the actual risk and severity of future water shortages. In this paper, we use a mathematical programming model to evaluate how these changes alter the likelihood and economic consequences of future shortages. We also consider the effect of more flexible transfers among irrigators via water markets. Our analysis indicates that future drought conditions like those seen in 2001 would have more modest economic impacts than in 2001 and that when combined with contingent groundwater supplementation and water transfer mechanisms such as water markets, both the likelihood and magnitude of economic losses among irrigators would be greatly reduced.

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Section: Prior Researchmentioning

confidence: 99%

Past and future water conflicts in the Upper Klamath Basin: An economic appraisal

Boehlert¹,

Jaeger

2010

Water Resources Research

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“…More specifically, Dinar et al and Griffin et al are examples of integrated optimization models applied to water management [18,19]. Dinar et al attempt to estimate agricultural water demand and supply as a series of optimization functions, whereas Griffin et al assign a value to in-stream flows and then develops optimization algorithms by varying economic policies and water consumption to assess the impact on water markets.…”

Section: Literature Reviewmentioning

confidence: 99%

Using an Integrated Participatory Modeling Approach to Assess Water Management Options and Support Community Conversations on Maui

Bassi

Harrisson²,

Mistry

2009

Sustainability

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Abstract:The purpose of this study is to provide an integrated analysis of water distribution on Maui and the cross-sectoral impacts of policies and regulations aimed at rejuvenating and sustaining the deep-rooted culture on the island. Since the water diversion system was implemented in 1876 on the island of Maui, there has been contention among local interest groups over the right way to manage and allocate this precious resource. There is also concern over the availability of the precious resource in the long term, as the demand for water is expected to exceed the potential supply of water on Maui by 2020. This paper analyzes various long run scenarios of policy options presently being discussed on Maui. By collaborating with local experts, business leaders, and community members, to develop a tool that facilitates policy formulation and evaluation, informed decisions can then be made by the local community to ensure sustainable development.

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“…Oil producing firms in the United States operate with firm-level production quotas (see Libecap & Wiggins, 1984, on prorationing). Finally, transferable water rights are important to ensure efficient water usage (Griffin & Hsu, 1993;Rosegrant & Binswanger, 1994). However, just like in the fisheries case, such individual property rights schemes only ensure efficient resource use under perfect enforcement.…”

Section: Introductionmentioning

confidence: 99%

Quota Enforcement and Capital Investment in Natural Resource Industries

Lazkano

2016

Marine Resource Economics

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We investigate the relationship between quota enforcement, compliance, and capital accumulation in ITQ regulated fisheries. Over-extraction and over-capacity represent two of the main fisheries management challenges, and we aim to model and analyze the two jointly. In a stylized resource model, quota violating and complying firms invest in capital, buy quotas, and choose their harvest. We show that in the short run, more capacity increases illegal extraction, while a well-functioning quota market partially alleviates this effect. We also show how tougher enforcement yields a double benefit by directly improving compliance, and by indirectly reducing incentives to invest in capacity, which improves future compliance. Our analysis thus contributes to the literature on market-based management of renewable resources.

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The Potential for Water Market Efficiency When Instream Flows Have Value

Cited by 57 publications

References 4 publications

Past and future water conflicts in the Upper Klamath Basin: An economic appraisal

Past and future water conflicts in the Upper Klamath Basin: An economic appraisal

Using an Integrated Participatory Modeling Approach to Assess Water Management Options and Support Community Conversations on Maui

Quota Enforcement and Capital Investment in Natural Resource Industries

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