Environmental Water Markets: Growth, Trends & Opportunities

This Masters Project examined the growth and trends in environmental water market activity in the western United States between 2008-18. This study demonstrated how state laws do and do not shape markets, along with how markets have continued to expand in both overall volume and market value. Three factors shape this expansion and maturation: 1) regulatory requirements, as 84% of transfers are based on a federal or state program; 2) innovation and maturation of markets with the inclusion of new types of payments and tools to conserve water; and 3) NGO purchasing power being stronger than that of federal or state agencies. Finally, the report concluded with an examination of future growth opportunities. This included reducing transaction costs, creating open exchanges and encouraging private investment to leverage improving environmental conditions.