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Modelling Water Trade in the Southern Murray-Darling Basin

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Author Info
D. Peterson (Productivity Commission)
G. Dwyer (Productivity Commission)
D. Appels (Productivity Commission)
J. Fry (Productivity Commission)

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Abstract

Released in November 2004, the paper uses TERM-Water, a bottoms-up regional CGE model of the Australian economy, to examine the regional effects of expanding trade of irrigation water in the southern Murray- Darling Basin. The study finds that water trading dampens the impact of water allocation cuts on gross regional product (GRP). The benefits of introducing trading within irrigation districts are greater than the further benefits of expanding trade to between these regions. Permitting trade of seasonal allocations allows irrigators to reallocate water in reaction to climatic conditions and water availability - and it is this flexibility that enables GRP reductions to be minimised.

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File URL: http://129.3.20.41/eps/urb/papers/0506/0506007.pdf
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Publisher Info
Paper provided by EconWPA in its series Urban/Regional with number 0506007.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length: 95 pages
Date of creation: 06 Jun 2005
Date of revision:
Handle: RePEc:wpa:wuwpur:0506007

Note: Type of Document - pdf; pages: 95
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Web page: http://129.3.20.41

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Related research
Keywords: southern murray-darling basin; CGE model; irrigation water; water allocation; water trade;

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Find related papers by JEL classification:
R - Urban, Rural, and Regional Economics

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  1. Heaney, Anna & Dwyer, Gavan & Beare, Stephen & Peterson, Deborah & Pechay, Lili, 2005. "Third-party effects of water trading and potential policy responses," Conference/Workshop Proceedings 31907, Productivity Commission. [Downloadable!]
  2. Marianne Keudel, 2007. "Climate Change and Water Resources – An International Perspective," IWP Discussion Paper Series 02/2007, Institute for Economic Policy, Cologne, Germany. [Downloadable!]
  3. Dwyer, Gavan & Loke, Paul & Appels, David & Stone, Susan & Peterson, Deborah, 2005. "Integrating rural and urban water markets in south east Australia: Preliminary analysis," Conference/Workshop Proceedings 31909, Productivity Commission. [Downloadable!]
  4. M Ejaz Qureshi & Tian Shi & Sumaira Qureshi & Wendy Proctor & Mac Kirby, 2009. "Removing Barriers to Facilitate Efficient Water Markets in the Murray Darling Basin – A Case Study from Australia," Socio-Economics and the Environment in Discussion (SEED) Working Paper Series 2009-02, CSIRO Sustainable Ecosystems. [Downloadable!]
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This page was last updated on 2009-11-13.

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