Developing Environmental Service Policy for Salinity and Water: Experiments with Regulations and Markets Linking Watersheds with Downstream Water Users
AbstractShortfalls in water supplies are perhaps the greatest practical NRM policy concern in Australia today, looming larger in many minds than the great international debates on greenhouse gasses, climate change and biodiversity. Because forest land cover uses more water than any other, wide expansion of upstream tree plantations can significantly reduce water yields upon which downstream urban, agricultural and wetlands depend. We consider the economic efficiency and equity (profitability and distributional) consequences of upstream land use change. The ‘environmental services’ of concern in our study are the mean annual quantities and qualities (volumes and salt concentrations) of water flowing from upper parts of a catchment to the downstream interests holding entitlements to that water. We consider the presence or absence of high salinity concentrations (C) in a tributary to the water supply of urban and other high-security users; the presence or absence of policy and/or markets giving strong incentives for upstream tree plantations (P); and the presence or absence of a policy that water entitlements (E) must be purchased from existing entitlement holders before new upstream tree plantations are allowed. A factorial experiment examining all eight ‘yes/no’ combinations of these conditions is defined to explore the associated distributions of upstream and downstream impacts.
Download InfoIf 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.
Bibliographic InfoPaper provided by Australian Agricultural and Resource Economics Society in its series 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia with number 6249.
Date of creation: 2008
Date of revision:
Contact details of provider:
Postal: AARES Central Office Manager, Crawford School of Public Policy, ANU, Canberra ACT 0200
Phone: 0409 032 338
Web page: http://www.aares.info/
More information through EDIRC
experimental economics; land use; rival water uses; MBI; Environmental Economics and Policy; Resource /Energy Economics and Policy;
This paper has been announced in the following NEP Reports:
- NEP-AGR-2008-11-18 (Agricultural Economics)
- NEP-ALL-2008-11-18 (All new papers)
- NEP-ENV-2008-11-18 (Environmental Economics)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral 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: (AgEcon Search).
If references are entirely missing, you can add them using this form.