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This paper estimates the costs of buying water use rights from farmers located in the Mafraq-Azraq basin in Jordan. The farmers’ water supply curve is estimated using data gathered from a contingent valuation survey and nonparametric procedures. Estimation results indicate that a total supply of 29 million m3 could be periodically purchased from farmers at an annual price of approximately JD 0.23/m3 (1 JD ≈ 0.70 US$), or a total cost of about JD 6.8 million per year. (JEL C51, Q58)

Potential for Tradable Water Allocation and Rights in Jordan