Controlling Groundwater Exploitation Through Economic Instruments: Current Practices, Challenges and Innovative Approaches

Groundwater can be considered as a common-pool resource, is often overexploited and, as a result, there are growing management pressures. This chapter starts with a broad presentation of the range of economic instruments that can be used for groundwater management, considering current practices and innovative approaches inspired from the literature on Common Pool Resources management. It then goes on with a detailed presentation of groundwater allocation policies implemented in France, the High Plains aquifer in the USA, and Chile. The chapter concludes with a discussion of social and political difficulties associated with implementing economic instruments for groundwater management

Climate change, water rights, and water supply: The case of irrigated agriculture in Idaho

We conduct a hedonic analysis to estimate the response of agricultural land use to water supply information under the Prior Appropriation Doctrine by using Idaho as a case study. Our analysis includes long-term climate (weather) trends and water supply conditions as well as seasonal water supply forecasts. A farm-level panel data set, which accounts for the priority effects of water rights and controls for diversified crop mixes and rotation practices, is used. Our results indicate that farmers respond to the long-term surface and ground water conditions as well as to the seasonal water supply variations. Climate change-induced variations in climate and water supply conditions could lead to substantial damages to irrigated agriculture. We project substantial losses (up to 32%) of the average crop revenue for major agricultural areas under future climate scenarios in Idaho. Finally, farmers demonstrate significantly varied responses given their water rights priorities, which imply that the distributional impact of climate change is sensitive to institutions such as the Prior Appropriation Doctrine. ? 2014. American Geophysical Union. All Rights Reserved

Acquiring water for the environment: lessons from natural resources management

Over-allocation of water resources to irrigation, industry, and cities has severely impacted flow-dependent riverine ecosystems and led to growing interest in ways to restore water to the environment; one increasingly popular approach is water buybacks. This paper reviews US and Australian experiences in buying back water, focusing on the conditions which enable and inhibit environmental water acquisitions in each country. We also compare experiences with buyback efforts in fisheries, another natural resource sector. Lessons from these experiences provide important insights into how future water buyback programmes to acquire environmental water could be operated more effectively. The review suggests that the overall success of an environmental water buyback is likely to be enhanced by (1) legal and institutional settings which clearly define water rights and lower administrative and other barriers to water transfers, (2) non-governmental organizations and community groups which play a complementary role to government, (3) creation of a system that will fairly distribute future risk of water availability and provide choices for a variety of ways of obtaining water, and (4) efforts that minimize negative community impacts, thus helping to maximize irrigator participation.Chelsea C. Lane-Miller, Sarah Wheeler, Henning Bjornlund & Jeffrey Conno