Water markets as an adaptive response to climate change

The chapter reviews the status of and potential for water markets as an adaptive response to climate change, with implications for developing countries. An analysis of several climate change scenarios suggests increasing pressure on water supplies relative to demand, and points to regions of the world where water markets could help efficiently move water among users. Growing water scarcity and variability due to climate change might well propel development of new water markets given the significant potential of water markets to alleviate growing water stress both in the long run and in response to short term water variability.