The book explores topics such as:Why water should be more expensive near sensitive environmental locations,Ways to set initial allocations of water rights,The role of regulatory oversight,The prerequisites of a water market, andHow to counter objections to water markets.
1. Water allocation: the joint problem of interaction and transaction costs.- 2. Water allocation approaches: theory and practice.- 3. How water flows, how it is modelled, and how we optimize it.- 4. Introduction to smart markets.- 5. A prototype common pool smart market for water.- 6. Case studies (much more to come if space permits).- 7. Water markets in a stochastic world.- 8. Establishing a market.- 9. Initial allocation of rights.- 10. Expectations for participants-traders.- 11. Market behavior.- 12. Critical perspectives on water trading.- 13. Concluding perspectives.- 14. Appendix: outline of market-clearing code.- 15. References.