WWRC 94-32
Determinants and Trends in Water Right Market Prices
Situation
As the demand for existing water supplies continues to grow, increasing
attention is being placed on transferring water rights through markets for urban uses.
Transfers are proposed as an alternative to or component of traditional structural
projects. Critical to the transfer process and evaluation of alternatives is knowledge
about water right prices. Knowledge about water right prices is necessary to
evaluate the economic benefits and costs of water transfers and to analyze other
water management and development alternatives. However, little is known about the
trends or determinants of water right prices. An understanding of water right market
prices and factors that influence prices will benefit analysts and decision makers by
providing them with information that can be used to evaluate the economic impacts
and desirability of water right transfers and water marketing.
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