Munich Personal RePEc Archive

Are Water Markets Liquid? Evidence from Southeastern Spain

Donna, Javier D. and Espin-Sanchez, Jose (2018): Are Water Markets Liquid? Evidence from Southeastern Spain.

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Water scarcity is ubiquitous, affecting all continents and nations. Water allocation has become a central concern of policy discussions around the world. The World Economic Forum (2015) listed water scarcity as one of the “greatest global [risks] to economies, environments, and people.” In regions such as Latin America, India, and the United States, this phenomenon is especially acute (Barnett et al., 2005). Water markets have emerged as the preferred institution to allocate irrigation water used by farmers in the developed world, particularly in dry regions of the US and Australia (Grafton et al., 2011).

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