Economics Seminar | The Effects of Water Markets: Evidence from the RioGrande
| Event | The Effects of Water Markets: Evidence from the Rio Grande |
|---|---|
| Speaker | Dr Tianshu Li Postdoctoral Research Associate, University of Virginia |
| Chairperson | Asst Prof Yan Jubo Economics, School of Social Sciences |
| Date | 26 January 2018, Friday |
| Venue | HSS Meeting Room 4 (HSS-04-71) |
| Time | 2:30pm to 3:30pm |
All are welcome to attend the seminar.
Abstract
Water markets are cap and trade systems that allow for sales and leases of the right to use water (without selling the land title). With increased water scarcity due to population growth, economic development, and climate change, water markets are increasingly popular across the globe. Like other tradable allowance markets, a fundamental theoretical prediction of water markets is to shift resources towards more productive uses. Our paper directly tests this conjecture by comparing the change in crop composition in the water market counties with their neighboring control counties before and after the market initiated. In a literature that is dominated by simulations studies, the paper is the first Grande water market in Texas started in 1971, and is one of the oldest and most established one in the US. Using agricultural census data from 1954 to 2012, we provide empirical evidence that water markets facilitate a shift from less productive crops that generate on average less dollars per unit of water to ones that are more productive.
Biography
Dr Tianshu Li is a postdoctoral research associate jointly hired by the Darden School of Business and the Department of Environmental Sciences under the Global Water Initiative at the University of Virginia. He received his Ph.D. in Economics from the University of Virginia in 2016 and also holds M.A. and B.A. degrees from the University of Tokyo. Dr Li’s research covers both environmental and development issues. He studies water markets and their effectiveness in addressing water scarcity, and forestation as a tool to fight against soil erosion (R&R at American Houral of Agricultural Economics). His development work includes evaluating poverty alleviation policies in China, rural employment programs in India (R&R at World Bank Economic Review), and the effect of foreign direct investment on crimes against women. Dr Li has taught Principles of Micrcoeconomics as an independent instructor at UVA.