Tradable Water Rights A Property Rights Approach To Resolving Water Shortages And Promoting Investment

In most countries, the state owns the water and hydraulic infrastructure, and public officials decide who gets water rights, how the water is to be used, and how much will be charged for its use. The authors of this paper compare administered systems of water allocation with a system of tradable water rights, and argue that water allocation by administrative edict has resulted in costly, large-scale inefficiencies in the supply and use of water, even with an adequate institutional framework. Secure property rights, on the other hand, have been shown to have a powerful positive effect on investment and efficiency, although only a few countries have tried to take advantage of the allocative efficiencies of a market to assign water resources among users. The authors argue that in order to ensure implementation of an effective water market system, attention should be paid to: (i) ensuring stakeholder participation in designing and implementing the new legislation; (ii) deciding on new rules for the initial allocation of rights and for how new rights should be allocated; (iii) establishing a public registry and block titling; (iv) setting up or strengthening water user associations; (v) protecting against the development of potential monopolies; (vi) ensuring that trades do not infringe on the water rights of existing users; and (vii) establishing appropriate environmental laws.

July 1996 In most countries, the state owns the water and hydraulic infrastructure, and public officials decide who gets water rights, how the water is to be used, and how much will be charged for its use. The authors of this paper compare administered systems of water allocation with a system of tradable water rights, and argue that water allocation by administrative edict has resulted in costly, large-scale inefficiencies in the supply and use of water, even with an adequate institutional framework. Secure property rights, on the other hand, have been shown to have a powerful positive effect on investment and efficiency, although only a few countries have tried to take advantage of the allocative efficiencies of a market to assign water resources among users. The authors argue that in order to ensure implementation of an effective water market system, attention should be paid to: (i) ensuring stakeholder participation in designing and implementing the new legislation; (ii) deciding on new rules for the initial allocation of rights and for how new rights should be allocated; (iii) establishing a public registry and block titling; (iv) setting up or strengthening water user associations; (v) protecting against the development of potential monopolies; (vi) ensuring that trades do not infringe on the water rights of existing users; and (vii) establishing appropriate environmental laws.

Financing Water Security and Green Growth offers a comprehensive overview of the innovative financial instruments and approaches available to implement water security and green growth initiatives at various scales and in different contexts. Robert C. Brears explores the use of a variety of public, private, and blended finance models to create climate-resilient water supplies, reduce water-energy-food nexus pressures, encourage water conservation and efficiency, and increase water reliability. He examines how these methods can decrease the costs and pollution associated with wastewater disposal, utilize natural processes to improve water quality, manage water quantity by restoring the hydrologic function of the landscape, and improve overall water governance. The book also provides in-depth case studies of the innovative application of financing tools to achieve water security and green growth in various locations of differing climates, lifestyles, and income levels, and identifies best practices.

Fragmentation in Water Policies in the Riparian ASEAN Member States

This book provides a first comprehensive legal examination of water rights arrangements and water rights trading in China. Although recent water reform in China has made substantial progress in policy development and practice, how its legal and institutional framework facilitates or hinders the application of tradable water rights remains less addressed in the existing scholarship. Against the backdrop of China’s water reform and the wider international debate in water governance, this book aims to provide an innovative approach to the complex issue of water governance by critically analysing the recent legal and policy developments in China towards tradable water rights. It examines the deficiencies of the current systems for water rights arrangements and trading, explores how China may learn from and build on the international trends in water rights trading practice (mainly Australia and the US), and proposes legal and policy frameworks for defining and administering tradable water rights in China that underpin sustainable water use in the face of exacerbated water scarcity, variability, and uncertainty. All in all, the book proposes pragmatic strategies for China’s water law and policy reform to move towards tradable water rights, which encompasses a comprehensive prescription from initialising and defining tradable water rights to administering water rights and trading. By reflecting on the deepening water reforms in both China and other jurisdictions, the book aims to contribute to the international water governance debate by exploring from a legal and policy perspective, how China, comparative to other cases around the world, can find a balanced combination of water allocation mechanisms to address its water challenges. It is hoped that the observations and proposed implications for China’s water reform will contribute to developing a better understanding of the way in which experiences in water markets can be shared from jurisdiction to jurisdiction.

Transboundary watercourses account for an estimated 60 per cent of global freshwater flow and support the livelihoods of hundreds of millions of people worldwide. Yet the indeterminate status of water rights in many international watercourses presents a problem and many attempts to resolve water rights issue have failed. Knowing how and where negotiations fail is essential if successful resolution is to be achieved. Muserref Yetim's important book seeks to illustrate a means to the peaceful resolution of natural resource based conflicts. Through a detailed study of the Tigris-Euphrates water conflict, involving Turkey, Syria and Iraq, countries of vital security interest to the world at large, the author clarifies the collective action dilemmas confronting Middle Eastern watercourses and reveals the bargaining bottlenecks where negotiations fail. She develops an original framework that explains bargaining failures and proposes conditions for creating a new property rights regime among watercourse states that offers a route to governing their shared water resources in ways that are politically, economically and environmentally sound. In almost all water scarce regions, international water resources are subject to intense unilateral exploitation in a highly competitive fashion. And as demand for freshwater continues to increase, through increasing urbanization and the continuing development of societies, so the issue of how such shared water resources can best be governed is becoming vitally important. Negotiating International Water Rights offers both a timely contribution to a matter of international concern and important insights into resource conflict in countries of vital security interest to the world at large.

"Rights to water are increasingly crucial and increasingly contested across theglobe. Urbanization, industrialization, environmental degradation, agriculturalintensification, rising per capita water use, increasing population, andother social, political, and economic transformations contribute to growing scarcity and demand for better management of water resources. In responding to these challenges, the world can draw on a rich heritage of institutions for regulating rights to water and resolving disputes, and a diversity of institutional arrangements that demonstrate great ingenuity in designing solutions to fit the conditions and priorities of various river basins. However, policy discussion in water management has often been impoverished by narrow polarization around a few idealized models of centrally integrated management or water commoditization, even though these comprise only a small and very incomplete subset of the institutional options available for effective management. The authors in this book expand the range of reflection and analysis of water rights reforms, offering insights aimed especially at those seeking practical pathways to improve equity, efficiency, and sustainability in access to water."