Communal Governance and Private Ownership of Water Rights
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Date
2019
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Abstract
"The prior appropriation doctrine adopted by all 17 Western US States, in which water users are
provided absolute, private rights to water allocated in order of first diversion, has been lauded
for its incentive structure for initial development but critiqued for subsequent inequalities in
water use. By contrast, Hispanic settlers of the region adopted proportional water rights. I
compare the performance of proportional water rights to the more prevalent private rights (prior
appropriation) using theory and empirical evidence. I test the theoretical predictions using a
natural experiment where acequias (Hispanic-rooted irrigation ditches) developed in Territorial
New Mexico are later divided by the formation of Colorado, exogenously forcing that subset to
be subject to the priority system while those in New Mexico continue to practice proportional
division today. With 1930 irrigation organization data, I first test the implications on
infrastructure investment, finding that indeed more investment has been made in Colorado and
increases in seniority of rights. Then, using annual satellite imagery from 1984-2011, I compare
performance under various stream flow conditions, finding that the marginal product of water is
generally larger under the proportional system. Finally, using survey data from 2013 I explore
how governance form and concerns of these Hispanic organizations have distinctly evolved
given the presence of, or lack thereof, the prior appropriation doctrine."
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irrigation