An empirical investigation of institutional change in groundwater management in texas: The Edwards aquifer case Academic Article uri icon


  • Texas Senate Bill 1477 changed the rules governing water appropriation in the Edwards Aquifer from a "rule of capture" to a "permit system." This article discusses some of the factors that explain the institutional change and empirically estimates the likely impact of the change. The article concludes that industrial and municipal water users benefited from the introduction of water marketing even though overall welfare declined. Also, the state's objective to protect endangered species was achieved with increased flows to key rivers, streams, bays, and estuaries in the aquifer region.

published proceedings


author list (cited authors)

  • Boadu, F. O., Mccarl, B. M., & Gillig, D.

complete list of authors

  • Boadu, Fred O||Mccarl, Bruce M||Gillig, Dhazn

publication date

  • December 2007