Winner Takes All or Win-Win: The Pros and Cons of Water Trading in Arizona

Abstract

Water markets have been identified as one solution to addressing water scarcity in the Western United States. This paper examines how water transfers indicate water commoditization and the implications surrounding water markets' social, environmental, and economic aspects. A systematic review of the recent literature found a disparity highlighting substantially more research on the environmental and economic benefits of water markets than on the social impacts of water markets. This finding contrasts with survey responses that found Arizona residents prioritize social needs, revealing a disconnect between what academics discuss in the literature and what is important to people.