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Title: The Effects of Water Markets: Evidence from the Rio Grande
Citation Type: Conference Paper
Publication Year: 2017
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Abstract: The Effects of Water Markets: Evidence from the Rio GrandePeter Debaere, University of Virginia Tianshu Li, University of Virginia The Rio Grande water market is one of the oldest water markets in the United States. Employing techniques from the social sciences, we present the first difference-in-difference analysis of the actual impact of water markets on production. We compare from 1954 to 2012 the crop composition in counties in the Rio Grande water market with those in their neighboring control counties before and after the water market was established in 1971. We provide evidence that water markets can facilitate a shift from crops that are on average more to ones that are less water intensive, or, alternatively, from crops that are on average less to ones that are more productive in terms of $ generated per unit of water. In addition, we find that such reallocations are especially prevalent in times of drought. Our findings supports water markets as a tool to manage water more effectively, which is one of the main challenges of an increasingly water-strapped world.
Url: https://ui.adsabs.harvard.edu/abs/2016AGUFM.H52G..08D/abstract
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Authors: Debaere, Peter; Li, Tianshu
Conference Name: 2017 Agricultural & Applied Economics Association Annual Meeting
Publisher Location: Chicago, Illinois
Data Collections: IPUMS NHGIS
Topics: Natural Resource Management, Other
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