This Handbook aims to expand the scope of efficient water use to include allocation of sources and quantities across uses and time, as well as integrating demand-management with supply-side substitutes. Mechanisms to incentivize efficient behavior are discussed in the contexts of perfect and imperfect information. Case studies from the United States, Australia, Europe, and Canada highlight the successes and remaining challenges of establishing efficient water markets.

Part 1: Principles and Overview 1. Global Outlook for Water Scarcity, Food Security, and Hydropower Mark W. Rosegrant 2. Water Scarcity and the Demand for Water Markets Richard Howitt 3. Ordering Extraction from Multiple Aquifers James Roumasset and Christopher A. Wada 4. Integrating Demand-Management with Development of Supply-Side Substitutes James Roumasset and Christopher A. Wada 5. Optimal Conjunctive Water Use over Space and Time Sittidaj Pongkijvorasin and James Roumasset Part 2: Private Behavior and Regulatory Design 6. Strategic Behavior and Regulation over Time and Space C.-Y. Cynthia Lin and Lisa Pfeiffer 7. Water Allocation under Distribution Losses: A Perspective Ujayant Chakravorty and Yazhen Gong 8. The Good, Bad, and Ugly of Watershed Management Kimberly Burnett, James Roumasset and Christopher A. Wada 9. Externalities and Water Quality Renan Goetz and Angels Xabadia 10. Groundwater Use and Irrigated Agriculture in California: Dynamics, Uncertainty, and Conjunctive Use Keith Knapp and Kurt Schwabe Part 3: Institutions and Information 11. Institutions for Managing Ground and Surface Water and the Theory of the Second-Best Karl Jandoc, Richard Howitt, James Roumasset and Christopher A. Wada 12. Towards an Economics of Irrigation Networks Karl Jandoc, Ruben Juarez and James Roumasset 13. Real-Time Information and Consumption: What Can Water Demand Programs Learn from Electricity Demand Programs? John Lynham and Nori Tarui 14. Water Scarcity and Water Institutions Ariel Dinar and Yacov Tsur 15. Managing Climate Risks through Water Trading Bonnie Colby, George Frisvold and Matthew Mealy Part 4: Water Markets and Institutions around the World 16. A California Postcard: Lessons for a Maturing Water Market Ellen Hanak 17. Water Trading Opportunities and Challenges in Europe Gonzalo Delacámara, Carlos Mario Gómez and Josefina Maestu 18. Water Trading in Australia: Understanding the Role of Policy and Serendipity Lin Crase, Sue O'Keefe, Sarah Wheeler and Yukio Kinoshita 19. Tradeoffs: Fish, Farmers, and Energy on the Columbia Ray Huffaker 20. Water Sales, Pecuniary Externalities and Local Development: Chinatown Revisited Gary D. Libecap 21. Agricultural Water Management at the Village Level in Northern China Qiuqiong Huang, Jinxia Wang, Siwa Msangi, Scott Rozelle and Jikun Huang 22. Implementing the European Water Framework Directive in Greece: An Integrated Socio-Economic Approach and Remaining Obstacles Phoebe Koundouri and Osiel González Dávila 23. Water Conservation and Trading - Policy Challenges in Alberta Canada Henning Bjornlund and K.K. Klein