Socioeconomic Consequences of Water Trading: Reviewing the Evidence for Water Markets in Australia

Céline Nauges, Sarah Ann Wheeler

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

In times of water scarcity, there is evidence and quite common acceptance that water markets improve overall efficiency by reallocating water toward uses that arc more highly valued, and that markets serve as a risk management tool for farmers (Barbier 2019; Graftonct al. 2011; Nauges ct al. 2016). However,water markets are a frequent cause for concern, and opponents to water trading often raise fears about the possible adverse effects on the welfare of irrigation-dependent rural communities (Griffin ct al. 2013; Wheeler2021, chapter 2). In what follows, we review the existing evidence on the socioeconomic consequences of water trading for both irrigated farmers and rural communities. Given space constraints, we abstract here from the environmental consequences of water trading (although see Wheeler ct al. 2014a for a review), from the arguments regarding the Basin Plan' (sec Grafton 2019 for a review)and from issues regarding claims of cartel and collusion behavior in water markets (see ACCC 2021 and Wheeler 2022 for a review).
Original languageEnglish
Title of host publicationElgar Encyclopedia of Water Policy, Economics and Management
EditorsPhoebe Koundouri, Angelos Alamanos
Place of PublicationCheltenham, UK
PublisherEdward Elgar Publishing Ltd
Chapter55
Pages239-242
Number of pages4
ISBN (Electronic)9781802202946
ISBN (Print)9781802202939
DOIs
Publication statusPublished - 2024
Externally publishedYes

Publication series

NameElgar Encyclopedias in the Social Sciences
PublisherEdward Elgar

Keywords

  • water trading
  • water markets
  • Australia
  • risk management
  • socioeconomic disadvantage

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