Efficient allocation of scarce resources: the role of water markets and trading

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School of Business | Bachelor's thesis
Electronic archive copy is available locally at the Harald Herlin Learning Centre. The staff of Aalto University has access to the electronic bachelor's theses by logging into Aaltodoc with their personal Aalto user ID. Read more about the availability of the bachelor's theses.

Date

2021

Major/Subject

Mcode

Degree programme

Taloustiede

Language

fi

Pages

29

Series

Abstract

Water scarcity is a global and growing problem. While demand for water is growing, the supply of water is increasingly uncertain due to climate change. Scarce water resources need to be allocated across competing needs and sectors, and current common water allocation mechanisms are inefficient. Water markets, where water users trade property rights to water, have been established in some arid areas of the world as a water management tool to solve these inefficiencies and mitigate scarcity. This thesis reviews existing literature on water markets and trading, focusing on three different aspects: water market mechanisms, issues of water markets, and the impact of water markets.

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Thesis advisor

Murto, Pauli

Keywords

water markets, property rights, resource allocation, water trading, market mechanisms

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