Water Bank Incentive Structures

Project ID: 521
Principal Investigator: Paula Engel
Research Topic: Water Marketing
Funded Fiscal Years: 2004
Keywords: None

Research Question

The overall intent of this research is to improve Reclamation's ability to facilitate water banks. The primary research goal is to analyze various incentives and disincentives to participating in a water bank. The research will address various incentive structures necessary to promote participation, for example, water valuation.

The primary research questions are:

* What are the barriers to water bank participation?

* What kind of incentive structure can be offered to make transactions more attractive?

Need and Benefit

Water banks can be used as a water management tool to help mitigate drought damages, Endangered Species Act (ESA) requirements, and conflicts among water users. This research will analyze potential entry barriers to water banks.

The analysis will focus on the Yakima Basin, but this research has application to other basins and water banks.

Contributing Partners

Contact the Principal Investigator for information about partners.

Research Products

Please contact research@usbr.gov about research products related to this project.

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Last Updated: 4/4/17