Economics ETDs

Publication Date

12-17-1979

Abstract

Throughout the development of the western regions of the United States there has always been concern over the availability and access to sources of water supplies. These water supplies have now been brought to a condition of full appropriation and with this condition markets have developed in which these water resources may be transferred between uses and users. With the increasing development of the region's energy and other natural resources, the role which these water markets play in the allocation of this most vital resource to any of these forms of development can be anticipated to expand. An instrument was developed to assess the level of sophistication exhibited by the market allocative mechanisms and was empirically applied to six hydrologic basins located in New Mexico, Utah and Colorado. This market sophistication questionnaire was developed around the research hypothesis that as water resources become increasingly scarce, the markets which allocate this resource become increasingly sophisticated in their allocative mechanisms. In the assessment of market sophistication there was required: 1) A detailed evaluation of the legal doctrine which governs the water resource's allocation; 2) an analysis of how water resources under this legal doctrine may be represented as an economic commodity; 3) a discussion of how the various institutions which have developed in chorus with the market institution affect the functioning of the market mechanism; and 4) a description of how the characteristics of market sophistication can be anticipated to be manifested. The market sophistication results obtained from the questionnaire's evaluation reflect a culmination of research and interviews conducted, and can be most descriptively presented as a summary of the analysis performed. The research hypothesis was confirmed by statistical test of the market sophistication score's correlation with observed scarcity condition (conveyed by recent water transfer prices) existent within the markets analyzed. This evaluation provided much insight into the actual functioning of water markets in the West.

Degree Name

Economics

Level of Degree

Masters

Department Name

Department of Economics

First Committee Member (Chair)

Franklin Lee Brown, Jr.

Second Committee Member

Alfred Leroy Parker

Third Committee Member

Shaul Ben-David

Language

English

Document Type

Thesis

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