Reference no: EM133974057

Question

Closure Water is a scarce resource. There is not as much as we desire freely available to us. Therefore water must be allocated among the competing uses for it In the western United States that allocation system is historically based on the prior appropriation system. Until recently that system allowed only for diversionary water use. In the last several decades it has been realized that there are many additional valuable uses for water. Some states have relied on regulation for alternative uses, such as in-stream flow. This often means that an existing rights holder loses rights. A political reallocation of rights provides benefits to new users at the expense of the previous right holders. Water markets, on the other hand, help compensate existing right holders for reducing their own water use and transferring rights to alternative uses. Water markets help put a price on water based on its value for alternative uses. That price helps motivate water conservation and increased efficiency. This simulation has focused on moving water from irrigation to in-stream use but could have allowed for trades to increase municipal or industrial uses as well.

Finally discuss the following about water rights and water use. Post your response to these questions in Module 8 Pearl River Discussion. Who gains from the water transfers?