Back
Published On

Short and Long term Effects of Water Markets

Abstract

We aim at checking from a theoretical viewpoint the claims made about water markets in the literature. We prove that water markets improve farmers’ profits and production efficiency but do not necessarily improve total production and do not always encourage private investments. Taking into account the transaction cost of water markets and the social cost due to the inactivity of some farmers that may result from water markets, we prove that water markets do not always improve total surplus.

Keywords

Private Investment, Production efficiency, Social costs, Total production, Transaction costs., Water markets, Water scarcity

  • License

    Creative Commons Attribution 4.0 (CC BY 4.0)

  • Language & Pages

    English, NA

Next Research
Copy of Cardiovascular Risk Factors and Cardiovascular Risk in People Living with HIV: Comparison of Four Cardiovascular Risk Prediction Algorithms