A Coasian Approach to Efficient Water Allocation of a Transboundary River

The United States and Mexico recently resolved a decade-old water dispute that required Mexico to repay the accumulated water debt within one year. A Coasian analysis estimates the social welfare gains attainable to each country under an alternative debt repayment scheme that allows repayment over a longer time horizon and in a combination of dollars and water, instead of solely in water. Assuming average water supply conditions, under the agreed 1-year repayment contract, U.S. compensation value is 534% greater and Mexico’s compensation cost is 60% less relative to when compensation is paid exclusively in water.


Issue Date:
2008-08
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/46985
Published in:
Journal of Agricultural and Applied Economics, Volume 40, Number 2
Page range:
473-484
Total Pages:
12
JEL Codes:
Q1; Q2




 Record created 2017-04-01, last modified 2017-08-25

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