Water is becoming increasingly scarce. If recent usage trends continue, shortages are inevitable. Aquanomics discusses some of the instruments and policies that may be implemented to postpone, or even avoid, the onset of water crises. These policies include establishing secure and transferable private water rights and extending these rights to uses that traditionally have not been allowed, including altering in-stream flows and ecosystem functions. The editors argue that such policies will help maximize water quantity and quality as water becomes scarcer and more valuable. Aquanomics contains many examples of how this is being accomplished, particularly in the formation of water markets and market-like exchanges of water rights.Many observers see calamity ahead unless water supplies are harnessed and effectively conserved, and unless water quality can be improved. It is also clear that declining water quality is a serious problem in much of the world, as increasing human activities induce high levels of water degradation. Those who voice these concerns, argue the contributors to this volume, fail to consider the forces for improvement inherent in market political-economic systems that can address water issues. The contributors see water quality in economically advanced countries as improving, and they believe this establishes the validity of market-based approaches.

Tapping Water Markets is about the past, present, and future of water markets. It compares water markets with political water allocation, documents the growth of water markets, and explores the ways in which water markets can be improved and implemented further. This book provides up-to-date information of where and why water shortages are occurring and where and why water markets are evolving to resolve conflicting water uses. Though the main focus is on the United States, it includes examples from other parts of the world to show how water markets are beginning to thrive. It contains institutional detail that is accessible to people who are not economic or hydrologic experts, and comes alive with numerous examples and case studies of water markets. The book begins with an analysis of water institutions as they have varied over time and location. It then covers a range of discrete water management topics including surface water allocation, groundwater management, environmental flows, and water quality trading. The book concludes with predictions about the future of water scarcity and the ability of water markets to shape that future more positively.

The principle of transferable groundwater rights is that by making water rights capable of being traded in the market, water resources can be used more sustainably and efficiently. Groundwater would achieve its economic value, by switching from the high volume-low value irrigation, which is prevalent with many farmers, particularly in South Asia, to low volume-high value urban supply or the growing of intensive horticultural or cash crops. This book discusses transferable groundwater rights in their broader context. It starts with a detailed description of the physical aspects of groundwater, which non-technical readers should find useful, followed by a discussion of legal and economic aspects. Water transfers and the international experiences in transferable groundwater rights are dealt with in detail in two subsequent chapters. A model is presented to guide those involved in water resources management and planning in their decision process to introduce transferable groundwater rights and water rights trading. The author concludes that transferable groundwater rights potentially offer a better alternative to land-based water rights systems. However, he casts serious doubt on whether groundwater rights trading on its own can achieve water resources sustainability, environmental protection and social equity. Government intervention seems to be almost always needed to assist the water rights market and take responsibility for any of its adverse consequences.

This book provides a first comprehensive legal examination of water rights arrangements and water rights trading in China. Although recent water reform in China has made substantial progress in policy development and practice, how its legal and institutional framework facilitates or hinders the application of tradable water rights remains less addressed in the existing scholarship. Against the backdrop of China’s water reform and the wider international debate in water governance, this book aims to provide an innovative approach to the complex issue of water governance by critically analysing the recent legal and policy developments in China towards tradable water rights. It examines the deficiencies of the current systems for water rights arrangements and trading, explores how China may learn from and build on the international trends in water rights trading practice (mainly Australia and the US), and proposes legal and policy frameworks for defining and administering tradable water rights in China that underpin sustainable water use in the face of exacerbated water scarcity, variability, and uncertainty. All in all, the book proposes pragmatic strategies for China’s water law and policy reform to move towards tradable water rights, which encompasses a comprehensive prescription from initialising and defining tradable water rights to administering water rights and trading. By reflecting on the deepening water reforms in both China and other jurisdictions, the book aims to contribute to the international water governance debate by exploring from a legal and policy perspective, how China, comparative to other cases around the world, can find a balanced combination of water allocation mechanisms to address its water challenges. It is hoped that the observations and proposed implications for China’s water reform will contribute to developing a better understanding of the way in which experiences in water markets can be shared from jurisdiction to jurisdiction.

Water is becoming an increasingly scarce commodity in many parts of the world. Population growth plus a growing appetite for larger quantities of cheap water quality as a result of urban, industrial, and agricultural pollution coupled with increasing environmental demands have further reduced usable suppliers. This book brings together thirty of the best economic articles addressing water scarcity issues within the US and Mexico. By touching on a number of different issues, this volume clearly articulates the need for improving existing institutional arrangements as well as for developing new arrangements to address growing water scarcity problems.