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Designing Water Markets to Manage Coupled Externalities: An Application to Irrigation-Induced Salinity in Australia

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  • Legras, Sophie
  • Lifran, Robert

Abstract

In this paper, the design of water markets for the management of irrigation-induced salinity in Australia is addressed. Indeed, this setting exhibits complex interactions between the different features of the resource water. Quality, quantity of surface and ground-water interact in ways that produce coupled environmental externalities. It is then difficult to design efficient policy instruments to tackle all the issues at stake. This paper provides a preliminary analysis of three types of water market mechanisms, involving diversion rights and recharge rights.

Suggested Citation

  • Legras, Sophie & Lifran, Robert, 2006. "Designing Water Markets to Manage Coupled Externalities: An Application to Irrigation-Induced Salinity in Australia," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25350, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25350
    DOI: 10.22004/ag.econ.25350
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    References listed on IDEAS

    as
    1. Hearne, Robert R. & William Easter, K., 1997. "The economic and financial gains from water markets in Chile," Agricultural Economics, Blackwell, vol. 15(3), pages 187-199, January.
    2. Weber, Marian L., 2001. "Markets for Water Rights under Environmental Constraints," Journal of Environmental Economics and Management, Elsevier, vol. 42(1), pages 53-64, July.
    3. Robert R. Hearne & K. William Easter, 1997. "The economic and financial gains from water markets in Chile," Agricultural Economics, International Association of Agricultural Economists, vol. 15(3), pages 187-199, January.
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    Cited by:

    1. Thomas Spencer & Tihomir Ancev & Jeff Connor, 2009. "Improving Cost Effectiveness of Irrigation Zoning for Salinity Mitigation by Introducing Offsets," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 23(10), pages 2085-2100, August.

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