Tapping Water Markets

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.

1. Why the Crisis? 2. Cheaper than Dirt 3. Who Owns the Water? 4. Water is for Fightin’ 5. Back to the Future 6. The New Frontier 7. Buy that Fish a Drink 8. Good to the Last Drop9. The Race to Pump 10. You Can’t Keep a Good Market Down

Terry L. Andersonis the executive director of PERC and Senior Fellow at the Hoover Institution, Stanford University. Anderson’s work helped launch the idea of "free market environmentalism" with the publication of his book by that title, coauthored with Donald Leal. Anderson is the author or editor of more than 30 books and has published widely in both professional journals and the popular press. He received his B.S. from the University of Montana and his Ph.D. in economics from the University of Washington. Brandon Scarborough is a research fellow at PERC specializing in water markets for economic and environmental applications, and the associated institutional structures that may promote or inhibit trading. Other research interests include markets for ecosystem services, climate change, and the efficacy of using forests to sequester carbon as part of a national or international abatement strategy. He holds B.S. degrees in biology and business and a Master’s in applied economics. Lawrence R. Watsonis a Research Fellow and the Director of Applied Programs at PERC. He specializes in contracts for environmental resources, particularly water and wildlife, and consults to environmental organizations and state agencies on market-based conservation strategies. Watson earned a law and a master’s degree from Duke University and a bachelor’s degree from Clemson University.