Stopping the Drain: Third-Party Responses to California's Water Market

19 Pages Posted: 27 May 2006

See all articles by Ellen Hanak

Ellen Hanak

Public Policy Institute of California

Date Written: January 2005

Abstract

Concerns over potential adverse effects of a state-sponsored water market have prompted many rural California counties to adopt ordinances restricting groundwater exports since the early 1990 s. Results from panel regressions that rely on original water market and institutional data indicate that these local restrictions have significantly reduced water exports. The optimality of this policy is assessed. In the presence of a water market, export restrictions appear as a low-cost management alternative to common property within source regions. The substantial statewide benefits of a market weigh in favor of broader public support to more comprehensive, non-discriminatory groundwater management initiatives. (JEL Q25, Q21)

Suggested Citation

Hanak, Ellen, Stopping the Drain: Third-Party Responses to California's Water Market (January 2005). Contemporary Economic Policy, Vol. 23, Issue 1, pp. 59-77, 2005. Available at SSRN: https://ssrn.com/abstract=904729

Ellen Hanak (Contact Author)

Public Policy Institute of California ( email )

500 Washington Street
San Francisco, CA 94111
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
16
Abstract Views
389
PlumX Metrics