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Water Markets in the Western United States: Trends and Opportunities

by 1,2,*,†, 1,*,†, 3 and 3
School of Public Policy, University of California Riverside, Riverside, CA 92521, USA
Center for Global Food and Resources, Adelaide, SA 5005, Australia
WestWater Research, Boise, ID 83702, USA
Authors to whom correspondence should be addressed.
These authors contributed equally to this work.
Water 2020, 12(1), 233;
Received: 13 December 2019 / Revised: 6 January 2020 / Accepted: 7 January 2020 / Published: 14 January 2020
(This article belongs to the Special Issue Institutions and Economics of Water Scarcity and Droughts)
Efforts to address water scarcity have traditionally relied on changing the spatial and temporal availability of water through water importation, storage, and conveyance. More recently, water managers have invested heavily in improving water use efficiency and conservation. Yet as new supply options become harder to find and/or appropriate, and demand hardens, society must consider other options to, if not reduce scarcity, minimize the impacts of such scarcity. This paper explores the role water markets are playing in addressing water scarcity in the American southwest: a water-limited arid and semi-arid region characterized by significant population growth rates relative to the rest of the US. Focusing on three representative southwestern states—Arizona, California, and Texas—we begin by highlighting how trends in water supply allocations from different water sources (e.g., surface water, groundwater, and wastewater) and water demand by different water users (e.g., agricultural, municipal, and environmental) have changed over time within each state. We then present recent data that shows how water trading has changed over time—in terms of value and volume—both at state level and sector level aggregates. We end with a discussion regarding some institutional adjustments that are necessary for water markets to achieve their potential in helping society address water scarcity. View Full-Text
Keywords: drought; water markets; Western US drought; water markets; Western US
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MDPI and ACS Style

Schwabe, K.; Nemati, M.; Landry, C.; Zimmerman, G. Water Markets in the Western United States: Trends and Opportunities. Water 2020, 12, 233.

AMA Style

Schwabe K, Nemati M, Landry C, Zimmerman G. Water Markets in the Western United States: Trends and Opportunities. Water. 2020; 12(1):233.

Chicago/Turabian Style

Schwabe, Kurt, Mehdi Nemati, Clay Landry, and Grant Zimmerman. 2020. "Water Markets in the Western United States: Trends and Opportunities" Water 12, no. 1: 233.

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