chapter  10
27 Pages

Experimental insights into the efficiency of alternative water management institutions

ByAURORA GARCÍA-GALLEGO, NIKOLAOS GEORGANTZÍS, AND PRAVEEN KUJAL

An increasing number of local governments all over the world are adopting regional hydrological plans aimed at integrated management of their water resources. The effect of such integrated management plans on the final quality of water is a central but underinvestigated issue in the ongoing debate concerning the desirability of centralization of the decisionmaking process and the use of market mechanisms to allocate water among its users. Based on the results obtained from a series of experimental sessions, this chapter presents insights into the efficiency and quality-enhancing effects of centralized public management using block rate bidding in a water market with uniform market-clearing prices.