Interactive water trading simulation helps stakeholders understand market structures, trade incentives, and economic outcomes of water allocation deci
This research highlight describes the development of a web-based water trading exercise designed to educate stakeholders and support research on water market design. Water trading among individual agricultural producers remains relatively rare despite large differences in the economic value of water between farms, largely due to high transaction costs and limited familiarity with market participation. To address this gap, the project developed an interactive simulation that allows participants to assume the role of a farm manager and make water trading decisions within different market structures.
The software enables users to explore bilateral trading and smart market systems, evaluate the value of water on their operation, and assess financial outcomes under different trading scenarios. The tool can be administered virtually or in person and allows researchers and educators to guide participants through simulated market exercises. By providing a hands-on learning environment, the platform helps water users, managers, and policymakers better understand how water markets function and how different market designs may influence economic and environmental outcomes.
This work was supported by the USDA National Institute of Food and Agriculture, project #1016467.
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Authors
Ronspies, R., MacEwan, D., Hatchett, S., Howitt, R., Yoder, J., Cook, J., and Gallagher, N.
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Suggested Citation
Ronspies, B., MacEwan, D., Hatchett, S., Howitt, R., Yoder, J., Cook, J., Brady, M., Gallagher, N. 2024. Open Water Trade: A Water Trading Exercise Software for Education and Water Market Design. Technology for Trade Research Highlight. Washington State University, Pullman, WA.
Year Published
2024
Areas of Focus
Research Engagement & Communication and Water Resources & Policy
Topics
Community Engaged Research and Water Resources
