Transferable Rations for Drought Management?

by Robert U. Reed, Univ of California, United States,
Jay R. Lund, Univ of California, United States,

Document Type: Proceeding Paper

Part of: Optimizing the Resources for Water Management


This paper examines the concept of transferable water rations from an economic perspective. Transferable water rations may improve efficiency in the distribution of water by allowing customers to reallocate rations after being initially distributed by the water district. While transferable water rations may improve economic efficiency, its benefits may be limited and outweighed by transaction costs and wealth redistributional affects which benefit program participants at the expense on non-participants.

Subject Headings: Water shortage | Water conservation | Droughts | Water resources | Water management | Emergency management | Economic factors | Water supply

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