The Problem of Water: Greater Reliance on Voluntary Transfers through Water

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The Problem of Water: Greater Reliance on Voluntary Transfers through Water

Concordia University, Portland, US has reference to this Academic Journal, The Problem of Water: Greater Reliance on Voluntary Transfers through Water Markets so that Achieve Environmental Objectives Gary D. Libecap University of California, Santa Barbara National Bureau of Economic Research Hoover Institution The Problem of Water 80 percent of water in the American West is used in agriculture. Appropriative Rights Doctrine Beneficial use Little alternatives, applied low-valued agriculture at the margin Growing Demands so that re-allocate some water from agriculture so that urban in addition to environmental uses. How so that achieve this? Judicial re-allocation Exchange through reliance on water markets Magnitude of the issue The Problem of Water National Science Foundation funded study of western water markets Water Strategist 3,317 transactions between 1987-2005. A comprehensive data set on transactions, sectors, duration, contract type, nature of trades, prices. Extract from monthly issues, all recorded trades?origin, destination, amounts, contract, price.

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The Problem of Water The Problem of Water The Problem of Water

Substantial amounts of water is exchanged within sectors: Most active is agriculture so that urban: Total amounts: 56% of trades in addition to 29% of water, annual flows: 18% of the water. Movement of water from agriculture so that environmental uses: Endangered Species Act. Voluntary Purchases in consideration of Instream Flows: Oregon Water Trust, Washington Water Trust, Montana Water Trust, Bureau of Reclamation. Required legislative change in the states. Total amounts: 7% of trades in addition to 13 % of the total water; annual flows, 19% of the water. Combination of short-term leases so that address drought or in consideration of dry-periods during the year (pay farmers so that release irrigation water; longer-term leases in addition to sales. The Problem of Water The Problem of Water

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The Problem of Water The Problem of Water Alternative is judicial/administrative re-allocation via litigation. Costly, contentious, in addition to slow. Lacks information on correct amounts. Mono Lake Case Over 20 years of litigation. All the while, the level of Mono Lake dropped. All or nothing transfer of water. No compensation. 2005 40 percent of Los Angeles? historical aqueduct supply directed so that environmental enhancement in Mono in addition to Inyo Counties. 166,000 acre feet annually,$83,166,000; PV= $1,427,052,576. 1995 so that 2000 the aqueduct provided 63% of city?s water. 2001-34%. Friant Dam Case Court-directed after 18 years of litigation. The Problem of Water Conclusion Important social in addition to economic gains from transferring water from Agriculture so that urban in addition to environmental uses. Where possible, rely on voluntary exchanges via water markets, whereby existing water rights are respected in addition to purchased. Rather than litigation. More rapid, less contentious. Information is generated. Farmers have so that determine the opportunity cost of not selling. Those seeking re-allocation have so that determine just how much water is necessary because it has so that be paid for. Occurring now via leases in addition to sales.

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