ABSTRACT

Water scarcity is an increasing problem in many parts of the world, yet conventional supply-side economics and management are insufficient to deal with it. In this book the role of water trading as an instrument of integrated water resources management is explored in depth. It is also shown to be an instrument for conflict resolution, where it may be necessary to reallocate water in the context of increasing scarcity. 

Recent experiences of implementation in different river basins have shown their potential as instruments for improving allocation. These experiences, however, also show that there are implementation challenges and some limitations to trading that need to be considered. This book explores the various types of water trading formulas through the experience of using them in different parts of the world. The final result is varied because, in most cases, trading is conditioned by the legal and institutional framework in which the transactions are carried out. The role of government and the definition of water rights and licenses are critical for the success of water trading. 

The book studies the institutional framework and how transactions have been undertaken, drawing some lessons on how trading can improve. It also analyses whether trading has really been a positive instrument to manage scarcity and improve water ecosystems and pollution emission problems in those parts of the world which are most affected. The book concludes by making policy proposals to improve the implementation of water trading.

chapter 1|14 pages

Introduction: myths, principles and issues in water trading

ByRONALD C. GRIFFIN, DANNELE E. PECK, JOSEFINA MAESTU

chapter 3|17 pages

New frontiers for water management: the California experience

ByELLEN HANAK

chapter 4|13 pages

Water trades in the western United States: risk, speculation and property rights

ByKRISTIANA HANSEN, RICHARD HOWITT, JEFFREY WILLIAMS

chapter 5|26 pages

Water markets and their environmental, social and economic impacts in Australia

ByHENNING BJORNLUND, SARAH WHEELER, PETER ROSSINI

chapter 7|19 pages

The evolution of water markets in Chile

ByGUILLERMO DONOSO

chapter 8|14 pages

The experience of water markets and the market model in Chile

ByCARL J. BAUER

chapter 9|19 pages

Breaking the gridlock in water reforms through water markets: experience and issues for India

ByNIRMAL MOHANTY, SHREEKANT GUPTA

chapter 10|17 pages

Areas of conflict and the role of water trading: the case of Spain

ByANTONIO SERRANO RODRÍGUEZ

chapter 11|15 pages

Voluntary water trading in Spain: a mixed approach of public and private initiatives

ByALBERTO GARRIDO, JOSEFINA MAESTU, ALMUDENA GÓMEZ-RAMOS,

chapter 12|15 pages

The myth of markets for water

ByJOSEPH W. DELLAPENNA

chapter 13|19 pages

Cash flows: markets for environmental flow allocations

ByDAVID KATZ

chapter 14|10 pages

Experiences with water quality trading in the United States of America

ByAmerica ROBERT J. ROSE

chapter 17|12 pages

Legal reforms that facilitate trading of water use rights in Spain

ByANTONIO EMBID IRUJO

chapter 18|13 pages

Drought management, uncertainty and option contracts

ByALMUDENA GÓMEZ-RAMOS

chapter 19|19 pages

Models for optimal water management and conflict resolution

ByFRANKLIN M. FISHER

chapter 20|13 pages

Optimization modeling in water resource systems and markets

ByJAY R. LUND

chapter 21|13 pages

Conclusions and recommendations for implementing water trading: how water trading can be part of the solution

ByJOSEFINA MAESTU AND ALMUDENA GÓMEZ-RAMOS