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Formal and Informal Markets for Water : Institutions, Performance, And Constraints

By Easter, K. William

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Book Id: WPLBN0000221726
Format Type: PDF eBook
File Size: 0.1 MB
Reproduction Date: 2005
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Title: Formal and Informal Markets for Water : Institutions, Performance, And Constraints  
Author: Easter, K. William
Language: English
Subject: Economics, Finance & business, World Bank.
Collections: Economics Publications Collection
Publication Date:
Publisher: The World Bank


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Easter, K. W. (n.d.). Formal and Informal Markets for Water : Institutions, Performance, And Constraints. Retrieved from


One response to growing demands for limited supplies of water is to reallocate available supplies through water marketing strategies. Although marketing is not a new concept, what is new is the growing recognition that the policy of developing new water supplies to meet future needs is no longer viable. Thus government officials are more open than ever before to new ideas for improving water management. In this context estimates of the economic benefits from trading water within and among sectors illustrate the potential for relatively substantial gains from trade (Vaux and Howitt 1984; Colby 1990; Chang and Griffin 1992; Weinberg, Kling, and Wilen 1993; Rosegrant and Binswanger 1994; Hearne and Easter 1997; Thobani 1997; Diao and Roe 1998). As a result countries such as Mexico have taken the plunge and adopted water use rights and water trading strategies as part of their new policy for managing water resources. Others, such as Peru and Pakistan, are considering or have considered implementing such programs (World Bank 1995, 1997). This article proposes that countries facing water shortages under their current water pricing systems consider water marketing as a way to reallocate water resources.


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