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Historical regulation of Victoria's water sector: A case of government failure?

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  • Harris, E.
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    Abstract

    This paper analyses the role of government failure in Victoria’s water sector between 1905 and 1984 as evidenced in the rise of in-stream salinity. It will be shown that high levels of salinity can, in part, be attributed to regulatory failure for two reasons. First, the method of water allocation, a compulsory minimum charge with the marginal cost of water being zero, encouraged over watering, resulting in increased water tables via groundwater recharge. Second, the government did not provide adequate finance for construction of appropriate removal of saline drainage water, and thereby allowed increasing in-stream salinity.

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    File URL: http://purl.umn.edu/118336
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    Bibliographic Info

    Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

    Volume (Year): 51 (2002)
    Issue (Month): 3 (September)
    Pages:

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    Handle: RePEc:ags:aareaj:118336

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    Related research

    Keywords: externalities; government failure; institutions; salinity; Resource /Energy Economics and Policy;

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    1. Peter Boettke & Christopher Coyne & Peter Leeson & Frederic Sautet, 2005. "The New Comparative Political Economy," The Review of Austrian Economics, Springer, vol. 18(3), pages 281-304, December.
    2. Pannell, David J. & McFarlane, Donald J. & Ferdowsian, Ruhi, 2000. "Rethinking the Externality Issue for Dryland Salinity in Western Australia," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123715, Australian Agricultural and Resource Economics Society.
    3. Pannell, David J., 2001. "Dryland salinity: economic, scientific, social and policy dimensions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(4), December.
    4. Ikeda, Sanford, 2003. " How Compatible Are Public Choice and Austrian Political Economy?," The Review of Austrian Economics, Springer, vol. 16(1), pages 63-75, March.
    5. Boettke, Peter J & Lopez, Edward J, 2002. " Austrian Economics and Public Choice," The Review of Austrian Economics, Springer, vol. 15(2-3), pages 111-19, June.
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