• Media type: E-Book
  • Title: Why is Water Illiquid? – The NQH2O Water Index Futures
  • Contributor: Wang, Jingjing [VerfasserIn]; Wang, Xiaoyang [VerfasserIn]
  • imprint: [S.l.]: SSRN, [2021]
  • Extent: 1 Online-Ressource (38 p)
  • Language: English
  • Origination:
  • Footnote: In: Accepted at Applied Economic Perspectives and Policy
    Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 20, 2021 erstellt
  • Description: The newly launched water futures market faces a serious illiquidity problem with scarce trading volume. We examine the causes of the illiquidity based on the futures contract design literature and empirical analysis of spot water markets in the western United States. The primary cause of illiquidity is a lack of effective hedging demand for water futures due to the heterogeneity and limited size of spot water markets. The opaqueness of the water futures settlement index further deters the participation of traders. Moreover, the lack of public information on spot water market transactions also reduces its attraction to speculators
  • Access State: Open Access