A Comparative Assessment of Water Markets: Insights from the Murray-Darling Basin of Australia and the Western US

2011 ◽  
Author(s):  
Gary D. Libecap ◽  
R. Quentin Grafton ◽  
Eric C. Edwards ◽  
R. J. O'Brien ◽  
Clay Landry
Keyword(s):  
Comparative Assessment ◽  
Water Markets ◽  
Murray Darling Basin ◽  
Western Us

Improving water markets in Spain: Lesson-drawing from the Murray-Darling Basin in Australia

2022 ◽  
Vol 259 ◽  
pp. 107224
Author(s):  
Sara Palomo-Hierro ◽  
Adam Loch ◽  
C. Dionisio Pérez-Blanco
Keyword(s):  
Water Markets ◽  
Murray Darling Basin ◽  
Lesson Drawing

scholarly journals Production choices with water markets and risk aversion: the role of initial allocations and forward trading

2018 ◽  
Vol 46 (4) ◽  
pp. 579-608 ◽  
Author(s):  
Philippe Bontems ◽  
Céline Nauges
Keyword(s):  
Irrigation Water ◽  
Weather Conditions ◽  
Water Markets ◽  
Initial Water ◽  
Production Risk ◽  
Net Returns ◽  
Murray Darling Basin ◽  
Forward Trading ◽  
Allocation Decisions

Abstract We develop a theoretical model that describes risk-averse farmers’ decisions when facing production risk due to uncertain weather conditions and when irrigation water can be traded on a market. We focus on the role of initial water allocations granted to irrigated farms at the start of the season. The presence of water markets makes the future water price uncertain and hence the value of initial water allocations uncertain. We analyse the properties of this background risk and study how initial water allocations impact farmers’ land allocation decisions between an irrigated crop and a non-irrigated crop, both characterised by random expected net returns. We then extend the model by permitting irrigation water to be traded ex-ante at a known price (forward market). Finally, we illustrate our main theoretical findings using simulations. We calibrate distributions of the random variables based on observed data from the Murray–Darling Basin in Australia where a water market has been in place for several decades.

scholarly journals Removing barriers to facilitate efficient water markets in the Murray-Darling Basin of Australia

2009 ◽  
Vol 96 (11) ◽  
pp. 1641-1651 ◽  
Author(s):  
M. Ejaz Qureshi ◽  
Tian Shi ◽  
Sumaira E. Qureshi ◽  
Wendy Proctor
Keyword(s):  
Water Markets ◽  
Murray Darling Basin

Overcoming third party effects from water trading in the Murray–Darling Basin

Water Policy ◽  
2006 ◽  
Vol 8 (1) ◽  
pp. 69-80 ◽  
Author(s):  
Teri Etchells ◽  
Hector M. Malano ◽  
Thomas A. McMahon
Keyword(s):  
Water Quality ◽  
Exchange Rates ◽  
Water Use ◽  
Third Party ◽  
Water Markets ◽  
Policy Makers ◽  
Water Trading ◽  
Murray Darling Basin ◽  
Delivery Reliability ◽  
Will Force

Water markets have great potential to increase the efficiency of water use. However, the very process of transferring a water entitlement can result in third party effects. Specifically, there are three types of impact that can affect the entitlements of third party irrigators: volumetric reliability, delivery reliability and water quality effects. In each case, policy makers must decide whether they will try to prevent the impacts and whether they will force traders to internalise third party effects. Potential strategies range from non-interventionist options, such as restricting trade, to market interventions, such as exchange rates, which adjust traded entitlements to account for volumetric externalities.

scholarly journals Water Markets: Australia's Murray-Darling Basin and the US Southwest

2010 ◽  
Author(s):  
R. Quentin Grafton ◽  
Clay Landry ◽  
Gary Libecap ◽  
Robert O'Brien
Keyword(s):  
Water Markets ◽  
Us Southwest ◽  
Murray Darling Basin ◽  
The Us
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