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A Coasian Approach to Efficient Water Allocation of a Transboundary River AgEcon
Willis, David B.; Baker, Justin Scott.
The United States and Mexico recently resolved a decade-old water dispute that required Mexico to repay the accumulated water debt within one year. A Coasian analysis estimates the social welfare gains attainable to each country under an alternative debt repayment scheme that allows repayment over a longer time horizon and in a combination of dollars and water, instead of solely in water. Assuming average water supply conditions, under the agreed 1-year repayment contract, U.S. compensation value is 534% greater and Mexico’s compensation cost is 60% less relative to when compensation is paid exclusively in water.
Tipo: Journal Article Palavras-chave: Coase; Water allocation; Water compensation; Water markets; Agribusiness; Consumer/Household Economics; Environmental Economics and Policy; Q1; Q2.
Ano: 2008 URL: http://purl.umn.edu/46985
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