Water Allocation in Rivers under Pressure Water Trading, Transaction Costs and Transboundary Governance in the Western US and Australia
Water Trading, Transaction Costs and Transboundary Governance in the Western US and Australia
Chapter 2: Water allocation and institutional change in a transaction costs world: an analytical framework
In this chapter, I frame the challenge of water allocation in a world of positive and often substantial transaction costs. Multiple theoretical traditions have examined the relationship between transaction costs and institutional change in natural resource allocation, including four Nobel laureates in the last 25 years: Coase, Williamson, Ostrom and North. Although each offers an important perspective, none is sufficient on its own to understand the evolution and performance of water allocation policy. Blending perspectives from Coase, Williamson, North and Ostrom (C-WON), allows the analyst to embrace complexity and elaborate a new calculus of institutional change for individuals and a ‘winning coalition’ needed for market-oriented water rights reform and river basin governance. This analytical perspective uses transactions as units of analysis, establishes models and typologies of transaction costs and institutional change, and enables the measurement and evaluation of institutional reforms in terms of adaptive efficiency, requiring ongoing institutional transitions to solve wicked water allocation problems in a path dependent world.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.