Alternative structures for water rights markets

  title={Alternative structures for water rights markets},
  author={J. Wayland Eheart and Randolph M. Lyon},
  journal={Water Resources Research},
This paper examines the design of systems of marketable permits for water consumption from natural watercourses. The most important considerations for the work reported upon here are those associated with (1) uncertainty of future streamflows and economic conditions, (2) locational issues, and (3) efficient and effective functioning of the markets. Particular attention is given to the problem of implementing marketable rights systems in regions presently following the riparian doctorine. In… 

Market simulations for irrigation water rights: A hypothetical case study

The efficiency of two marketable water rights systems in a lentic (lakelike) structure is assessed quantitatively for a case study based on hypothetical irrigation water use. Water rights are

Model for Prescribing Ground‐Water Use Permits

In 1986 the Massachusetts Water Management Act was passed, allowing greater control over both surface and ground‐water withdrawals. The act has the dual goal of allowing sustained economic growth and

Do water markets “work”? market transfers and trade-offs in the southwestern states

Many authors argue that markets will (and should) become a common means of transferring water rights in the western United States. Previous studies have estimated benefits from potential transfers

Evaluation of Programs for Regulating Withdrawal of Surface Water under the Riparian Legal System

The frequency of water conflicts in riparian areas has increased in recent years, forcing water agencies to consider regulating water withdrawals from streams. In this paper, we evaluate permitting

Privatizing the ground water resource: individual use and alternative specifications

: While most inquiries into improving the efficiency of ground water allocation have focused upon various schemes involving centralized management, recently the focus has shifted towards exploring

Employing Market Mechanisms to Encourage Efficient Use of Water in the Middle East

The growing demand by countries in the eastern Mediterranean for surface waters and the rapidly depleting groundwater reservoirs raise the need to explore ways and means to ameliorate existing and

Closure to: The optimal allocation of water withdrawals in a river basin

An increasing number of states use permit programs to coordinate and to control water resource allocations. A general approach is suggested for allocating and permitting water withdrawals in a river



Marketable permits for the control of phosphorus effluent into Lake Michigan

Transferable discharge permits (TDP) can be used to achieve desired abatement levels at costs that approach the minimum. The emphasis in the discussion is on the implementation of such a system, the

Water Law, Water Transfers, and Economic Efficiency: The Colorado River

The Colorado River illustrates that inefficient water allocation in the form of restricted transfer rights can give a false impression of water shortages. Transfer obstructions at the Federal,

Auctions and Alternative Procedures for Allocating Pollution Rights

The present paper investigates the political feasibility of policies to control pollution and fishing. It first hypothesizes the following: when common or usufruct property rights are changed to full

The Role of Securities in the Optimal Allocation of Risk-bearing

The theory of the optimal allocation of resources under conditions of certainty is well-known. In the present note, an extension of the theory to conditions of subjective uncertainty is considered.

Optimal Production and Allocation under Uncertainty

I. Ex ante and ex post optimum, 81. — II. Consumers and commodities, 83. — III. Consumer choice and the subjectivity theorem, 85. — IV. Necessary conditions for ex post Pareto optimum given Arrow

The Analytics of Uncertainty and Information- An Expository Survey

Among the very large number of people who provided comments and suggestions, we would like to thank most especially Fritz Machlup, RobertA. Jones, Mark Perlman, and RichardJ Zeckhauser. Hirshleifer's

Water Law and Private Decision-Making: A Critique

  • J. Milliman
  • Economics
    The Journal of Law and Economics
  • 1959
THE rapid increase in water use in recent years and the prospect of further increase mean that water is rapidly losing its status as a "free" good (in humid regions) or even a "cheap" good (in arid

The Definition of a Surface Water Right and Transferability

THE allocation of water through private markets has frequently been challenged because property rights to water are deemed to be ill defined.' Historically water rights to both surface and ground