Estimating Water Rights Demand and Supply: Are Non-market Factors Important?

Guillermo Donoso, Oscar Melo and C. Jordán

Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), 2014, vol. 28, issue 12, 4218 pages

Abstract: Water rights demand and supply in the upper Maipo river basin (Metropolitan Region of Chile) are estimated for the period July 1998 to June 2003, as well as a reduced form model for the equilibrium water rights price based on supply and demand determinants, as well as characteristics of the participating agents such as the economic sector of each agent and their individual market experience. Results show that the main participants in the market are both agriculture and real estate sectors (developers); agriculture buying 57 % and selling 68 % of transactions. The estimated supply and demand system shows that market forces indeed drive market water right prices. Demand is inelastic to price while supply is highly elastic. Furthermore, supplied and demanded water rights quantities are functions of water right price as well as the economic sector of buyer and sellers, sectoral profits, and geographic location of the water right. Additionally, the agent’s previous water rights market-experience is an important determinant of water rights demands and supply. Copyright Springer Science+Business Media Dordrecht 2014

Keywords: Water market; Water rights; Economic agents; Water rights price elasticities (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1007/s11269-014-0739-3 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:waterr:v:28:y:2014:i:12:p:4201-4218

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11269

DOI: 10.1007/s11269-014-0739-3

Access Statistics for this article

Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA) is currently edited by G. Tsakiris

More articles in Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA) from Springer, European Water Resources Association (EWRA)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().