Improving water markets in Spain: Lesson-drawing from the Murray-Darling Basin in Australia

The transfer of successful water market governance between international settings is increasingly attractive to policy makers under globalization. This paper tests lesson-drawing approaches to water market governance transfers using data from Spain and the Murray-Darling Basin, Australia. Spain is the blueprint country for water market adoption in Europe, while Australia is often presented as a world leader in innovative water market arrangements. A preliminary comparative analysis framework linking water market governance principles to observed institutional arrangements and outcomes is provided. Finally, some key lessons, problems and policy transfer potential to stimulate and enhance Spanish water markets from lesson-drawing approaches are drawn, with an emphasis on adaptive capacity as an institutional performance metric. We find that Spain's current water governance institutions and arrangements offer a solid platform for marketing reform, where some key adaptive capacity constraints are able to be addressed. The lessons drawn from this study highlight those areas of change which, while challenging, can be achieved in our view.