Water markets and third-party effects

Book Title: NA
Year Published: 2008
Month Published: NOV
Author: Bourgeon, Jean-Marc ; Easter, K. William ; Smith, Rodney B. W.
Book Group Author: NA
Abstract:

We examine potential third-party effects arising from trading water from one region (rural) to another (urban). Using labor, water and heterogeneous land, rural agents produce a traded agricultural good and nontraded service good. Absent job market frictions, increased water trading improves per capita regional welfare, but aggregate service income can increase (decrease) while individual land rents decrease (increase). If labor experiences job market frictions, water trading can trigger socially inefficient land fallowing. and a decrease in per capita regional welfare. Simulation results confirm the no-job-market-friction model predictions.

Pages: 902-917
URL: NA
Volume: 90
Number: 4
Journal: AMERICAN JOURNAL OF AGRICULTURAL ECONOMICS
Journal ISO: Am. J. Agr. Econ.
Organization: NA
Publisher: BLACKWELL PUBLISHING
ISBN: NA
ISSN: 0002-9092
DOI: 10.1111/j.1467-8276.2008.01146.x
Keywords:

job market frictions; regional economics; resource economics; third-party effects; water markets

Source: Web of Science
Series:
Series Number:
Document Type:
Subject Category: