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Urban water supply in Australia: the option of diverting water from irrigation

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  • John Quiggin

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

Abstract

Most urban areas in Australia are facing the prospect of increasing scarcity of water. Further pressure arises from evidence that existing levels of water use in many catchments are environmentally unsustainable. One option, feasible for some but not all Australian cities is the diversion to urban areas of water currently used for irrigated agriculture. Such diversions are currently constrained by a range of government policies. However, plans for the creation of a national water market raise the possibility that water rights may be purchased from irrigators and used to increase the supply of water for residential use. A number of policy concerns, notably relating to stranded assets and environmental externalities must be addressed in the consideration of such purchases.

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Bibliographic Info

Paper provided by Risk and Sustainable Management Group, University of Queensland in its series Murray-Darling Program Working Papers with number WP3M06.

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Date of creation: Feb 2006
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Handle: RePEc:rsm:murray:m06_3

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Cited by:
  1. Anthony Ryan & Clive L Spash & Thomas G Measham, 2009. "Household Water Collection in Canberra," Socio-Economics and the Environment in Discussion (SEED) Working Paper Series 2009-06, CSIRO Sustainable Ecosystems.
  2. Crase, Lin & O'Keefe, Sue & Dollery, Brian, 2009. "Water Buy-Back in Australia: Political, Technical and Allocative Challenges," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 47640, Australian Agricultural and Resource Economics Society.
  3. Neal Hughes & Ahmed Hafi & Tim Goesch, 2009. "Urban water management: optimal price and investment policy under climate variability ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(2), pages 175-192, 04.
  4. Grafton, R. Quentin & Kompas, Tom, 2002. "Pricing Sydney water," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(3), September.
  5. Neil Byron & Alan Johnston & Rick Baker & Andrew Barker, 2008. "Towards Urban Water Reform," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 41(4), pages 401-412, December.
  6. R. Quentin Grafton & Tom Kompas, 2006. "Sydney Water : Pricing for Sustainability," Microeconomics Working Papers 21835, East Asian Bureau of Economic Research.
  7. R. Quentin Grafton & Michael B. Ward, 2008. "Prices versus Rationing: Marshallian Surplus and Mandatory Water Restrictions," The Economic Record, The Economic Society of Australia, vol. 84(s1), pages S57-S65, 09.
  8. Larson, Silva & Stoeckl, Natalie & Neil, Barbara & Welters, Riccardo, 2013. "Using resident perceptions of values associated with the Australian Tropical Rivers to identify policy and management priorities," Ecological Economics, Elsevier, vol. 94(C), pages 9-18.

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