Water institutions and the law of one price

  title={Water institutions and the law of one price},
  author={Eric C. Edwards and Gary D. Libecap},
We examine the economics of the water rights and markets in the US West. This is the region of North America where water supplies are most limited in face of rapidly growing demands. The striking feature of water markets is how unlike those for other commodities they appear. In particular, the law-of-one price does not hold. Other agricultural commodities, for instance, empirically do not have systematic price differences that persist over time. This is not the case for water. In water markets… 

How Well Do U.S. Western Water Markets Convey Economic Information?

An efficient market implies that potential gains from trade are fully captured. Achieving this requires a well-functioning market where prices reflect all available information. In the case of water

Economic organization and the structure of water transactions

This paper analyzes the structure of water transactions using data on contract duration from California. Water rights in the western United States are transferred through short-term and longterm

Essays in Water Conservation and Water Quality Programs

As growing populations continue to drive demand for water, managers of this fundamental resource face the dual challenge of providing both sufficient and clean supplies. In this dissertation, I

The Long-Term Outcomes of Restoring Indigenous Property Rights to Water*

Water rights were allocated in the Western United States over 1850—1900 without regard for pre-existing Indigenous claims, but a 1908 U.S. Supreme Court Ruling (Winters v. United States) created a

The Relationship between Priority and Value of Irrigation Water Used with Prior Appropriation Water Rights

This article examines the relationship between water right priority and value of use for rights defined by prior appropriation, and tests whether this relationship is different for rights that have

Left in the Dust? Environmental and Labor Effects of Rural-Urban Water Sales

Growing urban populations and shifting precipitation patterns under a changing climate motivate the flexible use of markets to reallocate water in arid regions. To understand the effects of these

Economic Insight from Utah’s Water Efficiency Supply Curve

Across the western US, growing populations and urbanization along with environmental demands and a changing climate have strained water allocation mechanisms originally designed to provide water to

Balancing Agricultural and Urban Water Needs in Transitioning Arid Landscapes

In the arid western United States where population expansion and economic growth are contingent on water availability, conversion of agricultural water rights is being used to fuel urban expansion.

Subsidies for Succulents: Evaluating the Las Vegas Cash-for-Grass Rebate Program

  • J. Baker
  • Economics
    Journal of the Association of Environmental and Resource Economists
  • 2021
I estimate the water savings, energy use externalities, and property value effects of a Las Vegas area water conservation program that subsidizes conversions of lawn to desert landscape. Using event