Allocating Water among Competing Uses: The Potential for Water Markets in New Zealand

Abstract

New Zealand benefits from a relative abundance of water. However both geographically and temporally New Zealand's water resources are unevenly distributed. Water markets have been promoted as a means of efficiently reallocating water amidst growing demands. The effectiveness of a particular water market is highly dependent on the institutional administrative and physical characteristics of that market. This seminar discusses the potential for water markets in New Zealand given the current administrative and institutional guidelines governing the allocation of water resources. Comparisons are made with three distinct Colorado water markets to provide insight into potential opportunities.