Potential for Tradable Water Allocation and Rights in Jordan

Abstract

This paper estimates the costs of buying water use rights from farmers located in the Mafraq-Azraq basin in Jordan. The farmers’ water supply curve is estimated using data gathered from a contingent valuation survey and nonparametric procedures. Estimation results indicate that a total supply of 29 million m³ could be periodically purchased from farmers at an annual price of approximately JD 0.23/m³ (1 JD ≈ 0.70 US$), or a total cost of about JD 6.8 million per year. (JEL C51, Q58)