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Risk and water management in the Murray-Darling Basin

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  • John Quiggin

    ()
    (Risk & Sustainable Management Group, School of Economics, University of Queensland)

Abstract

Most settled parts of Australia, notably including the Murray-Darling Basin, experience low and highly variable rainfall levels. Both medium-term cycles such as the Southern Oscillation and longer term climate change contribute uncertainty in additional to that arising from seasonal fluctuations. It follows that uncertainty is an inherent feature of water management in Australia. In addition, the policy process itself generates uncertainty. As new knowledge about water systems emerges and new demands, such as increased concerns about environmental flows, arise, policies must adjust. The adjustment process inevitably creates uncertainty for both new and existing water users. It follows that the allocation of risk and uncertainty is a crucial problem in the design of institutions for water management in Australia.

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Paper provided by Risk and Sustainable Management Group, University of Queensland in its series Murray-Darling Program Working Papers with number WPM05_4.

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Date of creation: Apr 2005
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Handle: RePEc:rsm:murray:m05_4

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  1. John Quiggin & Robert G. Chambers, 2004. "Drought policy: a graphical analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 225-251, 06.
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