Robust Institutions for Sustainable Water Markets: A Survey of the Literature and the Way Forward

37 Pages Posted: 25 Jun 2013

See all articles by Alexandros Maziotis

Alexandros Maziotis

Fondazione Eni Enrico Mattei

Elisa Calliari

Fondazione Eni Enrico Mattei

Jaroslav Mysiak

Fondazione Eni Enrico Mattei (FEEM)

Date Written: June 24, 2013

Abstract

This paper discusses a framework for analyzing robust institutions for water markets drawn on the new institutional economics school of thoughts which is based on Williamson, North, Coase and Ostrom theories on transaction cost economics, property rights and collective actions. Based on these theories, we review the evolution and development of water reforms and markets in countries such as Australia, USA (California and Colorado), Chile and in Spain. Based on the lessons learned from the Spanish and international experience on water markets, a list of robust recommendations for the improvement of water markets in Spain is proposed. These include among others, not only the definition of secure water rights, through the registration of rights or recognition of environment as a legitimate user, but also the monitoring of water trading activities, including the collection of information for prices and quantities or cost-benefit analysis for quantifying benefits and externalities. Finally, based on Sharma’s approach (2012) a new robust water governance model for Spain is proposed in which the highest priority is given to the role of legal and political institutions and second priority to environmental, economic and social needs. We hope that the framework presented in this paper will function as a tool for researchers and policy makers in Spain and other European countries to understand how water markets can be further developed to be economically and environmentally efficient, and socially accepted.

Keywords: New Institutional Economics, Robust Design Principles, Water Governance, Institutions, Water Markets

JEL Classification: B52, D23, Q25

Suggested Citation

Maziotis, Alexandros and Calliari, Elisa and Mysiak, Jaroslav, Robust Institutions for Sustainable Water Markets: A Survey of the Literature and the Way Forward (June 24, 2013). FEEM Working Paper No. 58.2013, Available at SSRN: https://ssrn.com/abstract=2284031 or http://dx.doi.org/10.2139/ssrn.2284031

Alexandros Maziotis (Contact Author)

Fondazione Eni Enrico Mattei ( email )

C.so Magenta 63
Milano, 20123
Italy

Elisa Calliari

Fondazione Eni Enrico Mattei ( email )

C.so Magenta 63
Milano, 20123
Italy

Jaroslav Mysiak

Fondazione Eni Enrico Mattei (FEEM) ( email )

C.so Magenta 63
Milano, 20123
Italy

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
94
Abstract Views
639
rank
367,935
PlumX Metrics