Advanced Search
MyIDEAS: Login

Designing, testing and implementing a trial dryland salinity credit trade scheme

Contents:

Author Info

  • Connor, Jeffery D.
  • Ward, John
  • Clifton, Craig
  • Proctor, Wendy
  • Hatton MacDonald, Darla

Abstract

This article describes implementation and outcomes of a credit trading trial focussed on dryland salinity in Victoria, Australia. In lieu of extant specified property rights, participants were invited to agree to obligations to provide groundwater recharge credits in exchange for pecuniary compensation. Participants were able to meet their obligations to supply groundwater recharge credits through land management actions resulting in monitored outcomes consistent with contractual obligations to reduce recharge. Alternatively, those in deficit were provided the option to obtain sufficient credits through market exchange. Surplus transferable recharge credits were produced by those participants who exceeded their own contractual obligations through improved land management. The paper describes the process of contract design and implementation. The trial involved a design and testing phase and an on-ground implementation phase. We describe composite methodologies deployed in the design and testing of alternative policy instruments and institutional arrangements, conducted prior to implementation. These involved community consultation, an attitudinal and behavioural survey, experimental economics and the development of a transparent and credible monitoring protocol. The conclusions drawn as a result of this analysis provided an empirical basis to implement the on-ground trial phase. Results of on-ground implementation are described. Finally, the methods and results of a Benefit Cost Analysis (BCA) of the on-ground trial implementation are outlined. The BCA accounted for salinity damage reduction, forgone river flow, carbon sequestration, production benefits and costs. The result of BCA was an estimated net benefit.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/B6VDY-4S0R6TV-1/2/eabc4dbd98e51c5f8a5ad226d164e2e2
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Ecological Economics.

Volume (Year): 67 (2008)
Issue (Month): 4 (November)
Pages: 574-588

as in new window
Handle: RePEc:eee:ecolec:v:67:y:2008:i:4:p:574-588

Contact details of provider:
Web page: http://www.elsevier.com/locate/ecolecon

Related research

Keywords: Tradeable credits Diffuse source pollution Environmental economics Salinity Market based instruments Experimental economics;

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. D. Appels & R. Douglas & G. Dwyer, 2005. "Responsiveness of Demand for Irrigation Water: A Focus on the Southern Murray-Darling Basin," Others 0506006, EconWPA.
  2. Timothy N. Cason & Lata Gangadharan, 2005. "A Laboratory Comparison of Uniform and Discriminative Price Auctions for Reducing Non-point Source Pollution," Land Economics, University of Wisconsin Press, vol. 81(1).
  3. Mike Young & Jim McColl, 2003. "Robust Reform: Implementing robust institutional arrangements to achieve efficient water use in Australia," Natural Resource Management Economics 03_003, Policy and Economic Research Unit, CSIRO Land and Water, Adelaide, Australia.
  4. Gintis, Herbert, 2000. "Beyond Homo economicus: evidence from experimental economics," Ecological Economics, Elsevier, vol. 35(3), pages 311-322, December.
  5. Binmore, Ken, 1999. "Why Experiment in Economics?," Economic Journal, Royal Economic Society, vol. 109(453), pages F16-24, February.
  6. King, Dennis M., 2005. "Crunch Time for Water Quality Trading," Choices, Agricultural and Applied Economics Association, vol. 20(1).
  7. Milgrom,Paul, 2004. "Putting Auction Theory to Work," Cambridge Books, Cambridge University Press, number 9780521551847, November.
  8. Gregory L. Poe & William D. Schulze & Kathleen Segerson & Jordan F. Suter & Christian A. Vossler, 2004. "Exploring the Performance of Ambient-Based Policy Instruments When Nonpoint Source Polluters Can Cooperate," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(5), pages 1203-1210.
  9. Uwe Latacz-Lohmann & Carel Van der Hamsvoort, 1997. "Auctioning Conservation Contracts: A Theoretical Analysis and an Application," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 407-418.
  10. Gary Stoneham & Vivek Chaudhri & Arthur Ha & Loris Strappazzon, 2003. "Auctions for conservation contracts: an empirical examination of Victoria's BushTender trial," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), pages 477-500, December.
  11. Tietenberg, Tom, 1998. "Ethical influences on the evolution of the US tradable permit approach to air pollution control," Ecological Economics, Elsevier, vol. 24(2-3), pages 241-257, February.
  12. Jacinto Braga & Chris Starmer, 2005. "Preference Anomalies, Preference Elicitation and the Discovered Preference Hypothesis," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 32(1), pages 55-89, 09.
  13. Smith, Vernon L, 1982. "Markets as Economizers of Information: Experimental Examination of the "Hayek Hypothesis"," Economic Inquiry, Western Economic Association International, vol. 20(2), pages 165-79, April.
  14. William Vickrey, 1961. "Counterspeculation, Auctions, And Competitive Sealed Tenders," Journal of Finance, American Finance Association, vol. 16(1), pages 8-37, 03.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Muradian, Roldan & Corbera, Esteve & Pascual, Unai & Kosoy, Nicolás & May, Peter H., 2010. "Reconciling theory and practice: An alternative conceptual framework for understanding payments for environmental services," Ecological Economics, Elsevier, vol. 69(6), pages 1202-1208, April.
  2. Anastasiadis, Simon, 2012. "An Inertia Model for the Adoption of New Farming Practices," 2012 Conference, August 31, 2012, Nelson, New Zealand 136038, New Zealand Agricultural and Resource Economics Society.
  3. Kandulu, John & Bryan, Brett, 2009. "Evaluating alternatives for mitigating Cryptosporidium risk and generating environmental service benefits in water supply catchments," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 48190, Australian Agricultural and Resource Economics Society.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:67:y:2008:i:4:p:574-588. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.