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.

Prediction Markets I: Why Prediction Markets for the Water Industry

Water resource managers, planners, investors and other interested parties must make decisions in the face of uncertainty about a variety of factors.  How many times has a professional been in a meeting where a critical future factor was unknown and the discussion was basically an exchange of unsubstantiated opinion?  Would a credible quantification of the likelihood and consequence of the impact of future events facilitate better, faster and cheaper planning and decision-making? Continue reading

On Markets and Water Security

Resource risk management is an important element of Water Security.  The changing hydrologic risk on the Colorado River provides a context to address how risk is currently allocated, how it may be reallocated, how we may reduce risk, and how we quantify risk and measure improvements in Water Security.  Continue reading

Changing Economics of Rural to Urban Water Transfers

The U.S. Department of Agriculture expects U.S. farm income to increase to an inflation-adjusted $110 billion (2005$) in 2013, the highest level in 40 years.  The changing economics on-farm will change the economics of rural-to-urban transfers. Continue reading

California Desalination: Orange County Negotiating another Poseidon Project

The Municipal Water District of Orange County (“MWDOC”) released last month a draft Water Reliability Agreement Term Sheet outlining the terms under which it may buy 56,000 AF per year of drinking water from Poseidon Resources’ Huntington Beach Seawater Desalination Project.  As with San Diego’s desalination plant in Carlsbad, another wholesale water agency in Southern California is seeking fully reliable water supplies.  Continue reading