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Book Details
Abstract
International Trade in Water Rights provides a new approach to the questions raised by international water transfer projects: To whom does water belong? More precisely, what rules should govern international water transfers from transboundary watercourses? These issues are usually studied through the lenses of international trade law.
International Trade in Water Rights offers a new approach by highlighting the fundamental issue of domestic and international water property regime and introducing the difference between trade in water and trade in water rights. International Trade in Water Rights analyses the conditions under which market-based instruments could participate in the resolution of water disputes over international watercourses and recommendations are made based on the study of two cases of inter-state water trading in the Colorado River Basin and in the Murray Darling Basin. It is argued that the recognition of water as an economic good in domestic water reform will increasingly impact the management of international watercourses.
The book is of key interest to water professionals, economists, lawyers, and political scientists dealing with transboundary disputes over water.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Half Title Page | i | ||
| Title Page | iii | ||
| Copyright | iv | ||
| Dedication | v | ||
| Table of Contents | vii | ||
| Preface | xi | ||
| Introduction | 1 | ||
| PART I: Water as an Economic Good in Domestic Water Reforms | 11 | ||
| Chapter 1: The International Recognition of Water as an Economic Good | 13 | ||
| CONTROVERSIES OVER WATER AS AN ECONOMIC GOOD | 13 | ||
| WATER RESOURCE ECONOMICS | 16 | ||
| The Cost of Water | 18 | ||
| Opportunity Cost, the Scarcity Value of Water Resource and Water Markets | 19 | ||
| Alternative Understanding of Opportunity Cost, Scarcity Value and Efficiency | 21 | ||
| Chapter 2: Evolution of Water Rights and Domestic Water Reforms | 25 | ||
| HISTORICAL PERSPECTIVE ON WATER RIGHTS | 25 | ||
| Roman Law | 26 | ||
| English Common Law | 26 | ||
| French Civil Law | 28 | ||
| Reasonable and Equitable Use Doctrine | 29 | ||
| Western US Prior Appropriation Doctrine | 30 | ||
| THE RECOGNITION OF WATER AS AN ECONOMIC GOOD IN CURRENT DOMESTIC WATER REFORMS | 32 | ||
| Formalization of Water Entitlements | 32 | ||
| Water Licensing in the Inkomati Water Area, South Africa | 33 | ||
| Water Pricing | 35 | ||
| Integrated Water Pricing and International Watercourses Management | 38 | ||
| Trend toward Tradable Water Rights and Water Markets | 39 | ||
| Water Resources’ Incorporation in the Public Domain | 40 | ||
| Chapter 3: Water Market Systems | 45 | ||
| THE CHILEAN WATER MARKET | 46 | ||
| WATER MARKET IN THE CANARY ISLANDS | 47 | ||
| WATER MARKETS AND WATER BANKING IN THE AMERICAN WEST | 48 | ||
| General Overview | 48 | ||
| Colorado Big Thompson Project (Colorado) | 50 | ||
| Lower Rio Grande Water Market (Texas) | 51 | ||
| Water Banking | 52 | ||
| Idaho Rental Pools and State Water Supply Bank | 53 | ||
| California Drought Water Bank | 54 | ||
| Texas Water Bank and Texas Trust | 56 | ||
| Arizona Water Banking Authority | 57 | ||
| AUSTRALIAN WATER MARKETS | 57 | ||
| New South Wale | 58 | ||
| Victoria | 58 | ||
| South Australia | 60 | ||
| MEXICO’S WATER REFORM | 61 | ||
| WATER MARKETS IN SPAIN | 63 | ||
| COMPARISON OF THE MAJOR CHARACTERISTICS OF WATER MARKETS | 64 | ||
| CONCLUSION | 67 | ||
| PART II: Trade in Water and International Water Law | 69 | ||
| Of Property and Interests | 69 | ||
| Chapter 4: The Property Regime of International Watercourses | 71 | ||
| DOES INTERNATIONAL WATER LAW EXIST? | 71 | ||
| The Implicit Common Property Regime of International Watercourses in the 1997 UN Convention on the Law of Non-navigational Uses of International Watercourses | 73 | ||
| The Evolution of the Property Regime of International Watercourses | 75 | ||
| Grey Zones in International Water Law | 77 | ||
| Current State Practice over International Watercourses | 79 | ||
| Federal States’ Practice as Origin of International Water Law | 82 | ||
| INTERNATIONAL WATER TRANSFERS AND INTERNATIONAL WATER LAW | 85 | ||
| Turkish Water Export to Israel | 88 | ||
| Bulk Water Export and Upstream States’ Reactions | 89 | ||
| Resistance Against the Commodification of Water Resources: The Lesotho Highlands Water Project (LHWP) | 91 | ||
| Does South Africa pay Lesotho for the Highlands Water? | 92 | ||
| Costs and Benefits Apportionment according to the LHWP Treaty | 92 | ||
| Conclusion | 95 | ||
| Chapter 5: The Relationship between International Trade Law and International Water Law | 97 | ||
| WATER DIVERSIONS FROM THE GREAT LAKES, THE 1909 BOUNDARY TREATY AND INTERNATIONAL TRADE LAW | 100 | ||
| Institutional Framework of the 1909 Boundary Waters Treaty | 101 | ||
| Different Rules for Boundary Waters and Tributaries of Boundary Waters | 101 | ||
| The Role of the IJC and its Guiding Principles | 102 | ||
| The IJC Reports on Great Lakes Diversions and Their Critiques | 103 | ||
| Reaction of the Great Lakes Governors to the IJC Interim Report | 105 | ||
| The Lochhead Report to the Governors | 108 | ||
| Toward the Marginalization of the IJC | 110 | ||
| Negotiation of the 2005 Great Lakes-Saint Lawrence Agreement and Compact | 112 | ||
| Conclusion | 114 | ||
| WATER AS AN ARTICLE OF COMMERCE IN US LAW | 115 | ||
| The US Dormant Commerce Clause | 115 | ||
| The Sporhase Case | 116 | ||
| The facts | 116 | ||
| The US Supreme Court’s Decision | 117 | ||
| 1-Is Groundwater an Article of Commerce? | 117 | ||
| Different Nature of Water Rights in Texas and Nebraska | 118 | ||
| 2- Does Nebraska Statute Violate the Dormant Commerce Clause? | 119 | ||
| Balancing local and federal interests | 120 | ||
| INVESTMENT CLAUSE IN NAFTA, WATER RIGHTS AND INTERNATIONAL WATER LAW: THE BAYVIEW IRRIGATION DISTRICT V. MEXICO CASE | 122 | ||
| Historical Background | 122 | ||
| Summary of the Dispute | 123 | ||
| Claimants’ accusations | 123 | ||
| Irrigation Districts are US investors . . . . | 124 | ||
| . . .of investment located in Mexico | 124 | ||
| The Mexican defence | 125 | ||
| The Nature of Texas Irrigation Rights in the Rio Grande Valley | 125 | ||
| Tribunal’s Decision | 127 | ||
| CONCLUSION | 129 | ||
| Part III: Market-Based Solutions along International Watercourses | 131 | ||
| Chapter 6: Economic Approaches to International Water Disputes | 133 | ||
| The Problem of Water Policies’ Harmonization | 137 | ||
| Coase Theorem and Water Resources | 138 | ||
| Chapter 7: Colorado River Basin Case Study | 143 | ||
| GENERAL OVERVIEW OF THE COLORADO RIVER BASIN | 144 | ||
| THE ‘LAW OF THE RIVER’ | 145 | ||
| The Colorado River Divided in Two Sub-basins | 145 | ||
| State Water Allocation | 147 | ||
| TESTING THE LIMITS OF THE LAW OF THE RIVER | 148 | ||
| Private Proposals of Interstate Water Transfers | 148 | ||
| California’s Interstate Water Bank Proposal and the Beginning of the Negotiations over Interstate Transfers in the Colorado River Basin | 152 | ||
| INTERSTATE WATER BANKING | 154 | ||
| Arizona Water Banking Authority | 154 | ||
| Federal Intervention: The Final Rule on Offstream Storage of Colorado River Water and Development and Release of Intentionally Created Unused Apportionment in the Lower Division States | 157 | ||
| Intentionally Created Unused Apportionment-ICUA | 158 | ||
| Authorized entities | 158 | ||
| Financial Compensation | 159 | ||
| Storage and Interstate Release Agreement Negotiations | 160 | ||
| Interstate Banking Agreement between SNWA and AWBA | 161 | ||
| Interstate Banking Agreement between MWD and SNWA | 163 | ||
| NEGOTIATIONS OVER THE DROUGHT PLAN: ‘OPERATION OF LAKE MEAD AND LAKE POWELL UNDER LOW RESERVOIR CONDITIONS’ | 164 | ||
| California’s Quantification Settlement Agreement and Interim Surplus Guidelines 1996–2003 | 165 | ||
| California 4.4 Plan | 165 | ||
| The Upper Basin States Asked to Reduce their Deliveries to Lower Basin States | 166 | ||
| Preferred Alternative | 167 | ||
| Allocation of reduced water deliveries | 168 | ||
| Shortage sharing agreement between Arizona and Nevada | 168 | ||
| Reduced Deliveries to Mexico in the Basin States’ Proposal | 169 | ||
| Intentionally Created Surplus Program | 172 | ||
| The first ICS programs and projects | 173 | ||
| Toward ICS trading in the Colorado River Basin? | 175 | ||
| CONCLUSION | 178 | ||
| Chapter 8: Murray-Darling Basin Case Study | 181 | ||
| GENERAL OVERVIEW OF THE MURRAY-DARLING BASIN | 182 | ||
| THE 1915 RIVER MURRAY AGREEMENT AMONG SOUTH AUSTRALIA, NEW SOUTH WALES, VICTORIA AND THE COMMONWEALTH | 184 | ||
| THE 1992 MURRAY-DARLING BASIN AGREEMENT | 186 | ||
| THE 1994 NATIONAL WATER REFORM FRAMEWORK | 189 | ||
| CAP ON DIVERSIONS IN THE MURRAY-DARLING BASIN | 189 | ||
| THE PILOT PROJECT - INTERSTATE WATER TRADING IN THE MURRAY-DARLING BASIN | 194 | ||
| Evaluation of the Pilot Project | 196 | ||
| THE 2004 NATIONAL WATER INITIATIVE (NWI) | 197 | ||
| Discussions over the exchange rates and tagging systems | 200 | ||
| Discussions over exit fees of irrigation districts | 202 | ||
| 2007 NATIONAL PLAN FOR WATER SECURITY AND THE 2007 WATER ACT: COMMONWEALTH’S INTERVENTION IN THE MURRAY-DARLING BASIN GOVERNANCE | 202 | ||
| Water Act 2007 | 204 | ||
| The Basin Plan and the Murray-Darling Basin Authority | 204 | ||
| The New Murray-Darling Basin Governance | 205 | ||
| New role for the Australian Competition and Consumer Commission in preparing trading rules for the Murray-Darling Basin | 207 | ||
| Conclusion | 210 | ||
| CONCLUSION | 211 | ||
| Conclusion | 217 | ||
| References | 223 | ||
| Index | 239 |