I-Corps: An Online Clearing House for Trading Resource Use Rights with Environmental and Spatial Constraints

University Of Illinois At Urbana-Champaign, Urbana IL

Investigators

Abstract

Previous theoretical and simulation studies predict that a tradable groundwater pumping rights system can generate positive societal impacts including both economic and environmental benefits. Completion of the proposed activities under the I-Corps program may help to develop an understanding of how to translate theoretical results and analyses into a viable market system. In particular, improved understanding of customer and stakeholder concerns and needs should ultimately lead to improved risk management systems that increase profits for all market participants. Conflict over water resource management is increasing, with large amounts of money being spent on litigation, as well as reduced agricultural productivity for farmers that are constrained as a result of regulations. Successful translation of project activities into public use may provide new risk management tools for farmers, reduce the costs of water reallocation, and lead to an increase in agricultural productivity and profits while maintaining or improving environmental conditions and resource sustainability. Successful completion of activities has the potential to increase understanding of how commercially viable market-based resource allocation systems should be designed and implemented.