Author Archives: Rodney T. Smith

About Rodney T. Smith

Rodney T. Smith, Ph.D., President of Stratecon Inc.—an economics and strategic planning consulting firm—advises public and private sector water users on the acquisition, sale and leasing of water rights and water supplies in the western U.S. He is routinely involved in economic valuation of water rights, water investments, and negotiation of water acquisition and transportation agreements and has served as an expert witness in the economic valuation of groundwater resources, disputes over the economic interpretation of water contracts, economics of water conservation and water use practices, and the socio-economic impacts of land fallowing. For more information, see www.stratwater.com.

A Modest Proposal to Restructure California’s State Water Project

Contractors of California’s State Water Project (“SWP”) are negotiating renewal of their SWP contracts that expire in 2037.  Rather than business as usual, California has an once in a generation opportunity to restructure the SWP along economic principles that facilitate better resource utilization, resolve lingering disputes over SWP water supply and transportation, and yield California billions of dollars.  How?  Auction the SWP’s water rights and facilities.  There are many issues to discuss.  Let the dialogue begin. Continue reading →

Southern Nevada Seeks Public-Private Partnership for Infrastructure Finance

Pat Mulroy, General Manager of the Southern Nevada Water Authority kicked-off the session on public-private partnerships at the recent 6th Annual OC Water Summit with a characteristically powerful and persuasive presentation about Southern Nevada’s infrastructure program.  She challenged the private sector to step up and work with public agencies to finance the large infrastructure investments facing the water sector.  Southern Nevada’s challenges provided an excellent context for the panel discussion that included former LA Mayor Richard Riordan and California State Treasurer Bill Lockyer.  The discussion provides a roadmap for an expanded role for public-private partnerships in water infrastructure finance.  Continue reading →

Lawn Fallowing versus Desalination

Outdoor residential water use is increasingly becoming a target for urban water conservation.  As western municipalities face more restricted water supplies, water providers are paying residents to take out their lawns permanently. Current programs in Southern Nevada and Los Angeles are yielding water conservation at a cost of $65,000/AF to $87,000/AF. Continue reading →

Prediction Markets II: What Are Prediction Markets and Why Do They Work?

My earlier post on Prediction Markets discussed why prediction markets for the water industry.  They are the next frontier in water markets—information markets to improve planning and decision-making in the face of uncertainty about legislative and regulatory actions, political change, hydrology, project operations, litigation outcomes and water prices.  Currently, discussions of the future are often little more than unsubstantiated opinion.  The water industry can do better.  Continue reading →