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 trading at the margin: The evolution of water markets in the Murray-Darling Basin

2005 ◽  
Vol 41 (7) ◽  
Author(s):  
H. N. Turral ◽  
T. Etchells ◽  
H. M. M. Malano ◽  
H. A. Wijedasa ◽  
P. Taylor ◽  
...  
Keyword(s):  
Water Markets ◽  
Water Trading ◽  
Murray Darling Basin

scholarly journals Comparative assessment of water markets: insights from the Murray–Darling Basin of Australia and the Western USA

Water Policy ◽  
2011 ◽  
Vol 14 (2) ◽  
pp. 175-193 ◽  
Author(s):  
R. Quentin Grafton ◽  
Gary D. Libecap ◽  
Eric C. Edwards ◽  
R. J. (Bob) O'Brien ◽  
Clay Landry
Keyword(s):  
Institutional Innovation ◽  
Third Party ◽  
Water Markets ◽  
Western Usa ◽  
Murray Darling Basin ◽  
Freshwater Diversions ◽  
Scarce Water ◽  
Total State ◽  
Total Market

Water markets in Australia's Murray–Darling Basin (MDB) and the western USA are compared in terms of their ability to allocate scarce water resources. The study finds that the gains from trade in the MDB are worth hundreds of millions of dollars per year (note that all monetary units of dollars in this article are treated as US$ because Australian$ are converted at par). Total market turnover in water rights exceeds US$2 billion per year while the volume of trade exceeds over 20% of surface water extractions. In Arizona, California, Colorado, Nevada and Texas, trades of committed water annually range between 5 and 15% of total state freshwater diversions with over US$4.3 billion (2008 US$; monetary units in dollars are expressed in their value in US$ in 2008) spent or committed by urban buyers between 1987 and 2008. The two-market comparison suggests that policy attention should be directed towards ways of promoting water trade while simultaneously mitigating the legitimate third party concerns about how and where water is used, especially in conflicts between consumptive and in situ uses of water. The study finds that institutional innovation is feasible in both countries and that further understanding about the size, duration and distribution of third party effects from water trade and how these effects might be regulated, can improve water markets' ability to manage water scarcity better.

Calculating exchange rates for water trading in the Murray-Darling Basin, Australia

2004 ◽  
Vol 40 (12) ◽  
Author(s):  
Teri Etchells ◽  
Hector Malano ◽  
Thomas A. McMahon ◽  
Barry James
Keyword(s):  
Exchange Rates ◽  
Water Trading ◽  
Murray Darling Basin

Homeowners’ Preferences for Smart Irrigation Systems and Features

EDIS ◽  
2020 ◽  
Vol 2020 (5) ◽  
pp. 5
Author(s):  
Hayk Khachatryan ◽  
Alicia Rihn ◽  
Dong Hee Suh ◽  
Michael Dukes
Keyword(s):  
Water Use ◽  
Water Policy ◽  
Resource Economics ◽  
Irrigation Systems ◽  
Policy Makers ◽  
Fact Sheet ◽  
Drought Conditions ◽  
Economics Department ◽  
Irrigation Technologies

Drought conditions make landscape irrigation and reducing water use top-of-mind for many Floridians. Encouraging wise water use is of particular importance to the smart irrigation industry and water policy makers. This 5-page fact sheet written by Hayk Khachatryan, Alicia Rihn, Dong Hee Suh, and Michael Dukes and published by the UF/IFAS Food and Resource Economics Department pinpoints key attributes and barriers affecting consumers' irrigation purchases and their adoption of smart irrigation technologies. https://edis.ifas.ufl.edu/fe1080

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.

The exit option: mediation and the termination of negotiations in the Northern Ireland conflict

2013 ◽  
Vol 24 (1) ◽  
pp. 40-55 ◽  
Author(s):  
Niall O´ Dochartaigh ◽  
Isak Svensson
Keyword(s):  
Northern Ireland ◽  
Third Party ◽  
British Government ◽  
Policy Makers ◽  
Content Type ◽  
Irish Republican Army ◽  
Northern Ireland Conflict ◽  
Exit Option ◽  
Information Advantage ◽  
The Uk

PurposeThe purpose of this study is to examine the mediation exit option, which is one of the most important tactics available to any third party mediator.Design/methodology/approachThe paper analyzes a crucial intermediary channel between the Irish Republican Army (hereafter IRA) and the British Government utilizing unique material from the private papers of the intermediary, Brendan Duddy, including diaries that cover periods of intensive communication, extensive interviews with the intermediary and with participants in this communication on both the British Government and Irish Republican sides as well as recently released official papers from the UK National Archives relating to this communication.FindingsThe study reveals how the intermediary channel was used in order to get information, how the third party and the primary parties traded in asymmetries of information, and how the intermediary utilized the information advantage to increase the credibility of his threats of termination.Research limitations/implicationsThe study outlines an avenue for further research on the termination dynamics of mediation.Practical implicationsUnderstanding the conditions for successfully using the exit‐option is vital for policy‐makers, in particular for peace diplomacy efforts in other contexts than the Northern Ireland one.Originality/valueThe paper challenges previous explanations for why threats by mediators to call off further mediation attempts are successful and argues that a mediator can use the parties' informational dependency on him in order to increase his leverage and push the parties towards settlement.

scholarly journals Blending Satellite Data to Monitor Agricultural Water Use

Eos ◽  
2017 ◽  
Author(s):  
Terri Cook
Keyword(s):  
Water Quality ◽  
Water Use ◽  
Satellite Data ◽  
New Technique ◽  
Agricultural Water ◽  
Agricultural Water Use ◽  
Improve Water Quality ◽  
A New Technique ◽  
Quality Assessments

A new technique that merges data gathered by multiple satellites can be used to monitor agricultural water use and improve water quality assessments around the globe.

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