Observatorio de I+D+i UPM

Memorias de investigación
Research Publications in journals:
Designing Water Markets for Unstable Climatic Conditions: Learning from Experimental Economics
Year:2007
Research Areas
  • Agricultural policy,
  • Applied economics
Information
Abstract
This article examines how water markets work under unstable climatic conditions.We know from theoretical work by Calatrava and Garrido (2005a, 2005b) that water markets can reduce the costs of water supply variability. Gómez-Ramos and Garrido and Howitt show that water options contracts could improve senior users¿ access to scarce resources at a lower cost than other alternative structural solutions. Those that sell water under scarcity conditions can also benefit from the revenue generated by selling all or part of the use rights. As Tsur and Graham-Tomasi have shown, a new source of supply provides significant stabilization value in addition to supplemental value.Water trading can enable users to find supplemental units, adding consumption and stabilization services. Water banks were successfully implemented in California in 1994 and 1995(Carter, Vaux and Scheuring; Easter, Rosegrant and Dinar). Following the experience of forerunners in water sector liberalization, such as the U.S., Chile,and Australia, Spain amended its 1985Water Law in 1999 to permit water right holders to exchange their water rights (Garrido 2006). In countries where water rights were assigned by the State, water markets can be designed ex novo by changing the way water rights are defined and enacting new market rules. By dissociating land and water rights, as well as water titles and use rights, users could pursue any possible strategy to maximize benefits using the market as a primary source of information on water scarcity.
International
Si
JCR
Si
Title
REV AGR ECON
ISBN
1058-7195
Impact factor JCR
0,469
Impact info
Volume
29
Journal number
3
From page
520
To page
530
Month
SIN MES
Ranking
Participants
  • Autor: Alberto Garrido Colmenero (UPM)
Research Group, Departaments and Institutes related
  • Creador: Grupo de Investigación: Economía Agraria y Gestión de los Recursos Naturales
  • Departamento: Economía y Ciencias Sociales Agrarias
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Cofinanciación del MINECO en el marco del Programa INNCIDE 2011 (OTR-2011-0236)
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