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Identifying Water Prices at which Australian Farmers Will Exit Irrigation: Results of a Stated Preference Survey

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  • Alec Zuo
  • Sarah Ann Wheeler
  • Peter Boxall
  • W. L. (Vic) Adamowicz
  • Darla Hatton MacDonald

Abstract

Among the measures taken by the Australian government to address one of the worst droughts on record in the Murray‐Darling Basin, exit package issues have rarely been investigated. A stated preference survey was designed to identify the range of water prices required for irrigators to sell all their water entitlements and leave the irrigation industry. Farmer participation responses are generally price elastic. There are large regional differences in price elasticities, but within a region there are few differences based on subgroups of farmers.

Suggested Citation

  • Alec Zuo & Sarah Ann Wheeler & Peter Boxall & W. L. (Vic) Adamowicz & Darla Hatton MacDonald, 2015. "Identifying Water Prices at which Australian Farmers Will Exit Irrigation: Results of a Stated Preference Survey," The Economic Record, The Economic Society of Australia, vol. 91(S1), pages 109-123, June.
    • Handle: RePEc:bla:ecorec:v:91:y:2015:i:s1:p:109-123
    DOI: 10.1111/1475-4932.12186
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    References listed on IDEAS

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    Cited by:

    1. Chu, Long & Grafton, R.Quentin, 2020. "Water pricing and the value-add of irrigation water in Vietnam: Insights from a crop choice model fitted to a national household survey," Agricultural Water Management, Elsevier, vol. 228(C).
    2. Wheeler, Sarah Ann & Zuo, Alec, 2017. "The impact of drought and water scarcity on irrigator farm exit intentions in the Murray– Darling Basin," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 61(3), July.
    3. Sarah Ann Wheeler & Ying Xu & Alec Zuo, 2020. "Modelling the climate, water and socio-economic drivers of farmer exit in the Murray-Darling Basin," Climatic Change, Springer, vol. 158(3), pages 551-574, February.
    4. Daghagh Yazd, Sahar & Wheeler, Sarah Ann & Zuo, Alec, 2020. "Understanding the impacts of water scarcity and socio-economic demographics on farmer mental health in the Murray-Darling Basin," Ecological Economics, Elsevier, vol. 169(C).

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