000			01171nam a22001457a 4500
999			_c522443 _d522443
008			230411b ||||| |||| 00| 0 eng d
100			_aRafey, Will _940050
245			_aDroughts, deluges, and (River) diversions: Valuing market-based water reallocation
260			_aThe American: Economic Reviews
300			_a113(2), Feb, 2023: p. 430-471
520			_aThis paper develops and applies a method to value water trading on a river network. The framework relies on regulatory variation in diversion caps to identify production functions for irrigated farms, then uses the estimated shadow values to assess the market's reallocation. I apply this framework to the largest water market in human history, located in southeastern Australia. Observed water trading increased output by 4–6 percent from 2007 to 2015, equivalent to avoiding an 8–12 percent uniform decline in water resources. Reallocation and average surplus both increase substantially during drought, implying that water markets can be most valuable when climatic variability is most severe. – Reproduced
773			_aThe American: Economic Reviews
906			_aWATER RESOURCES
942			_cAR