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Rethinking the externality issue for dryland salinity in Western Australia

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  • Pannell, David J.
  • McFarlane, Donald J.
  • Ferdowsian, Ruhi

Abstract

Dryland salinity has been conceived of as a problem involving massive off‐site impacts and therefore requiring coordinated action to ensure that land managers reduce those off‐site impacts. In economic terms, salinity is seen as a problem of market failure due to externalities, including external costs from one farmer to another and from the farm sector to the non‐farm sector. In this article, we argue that, at least in Western Australia (WA), externalities are much less important as a cause of market failure than has been widely believed. If all externalities from salinity in WA were to be internalised, the impact on farm management would be small.

Suggested Citation

  • Pannell, David J. & McFarlane, Donald J. & Ferdowsian, Ruhi, 2001. "Rethinking the externality issue for dryland salinity in Western Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(3), September.
  • Handle: RePEc:ags:aareaj:117571
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    References listed on IDEAS

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    1. George, R. J. & Nulsen, R. A. & Ferdowsian, R. & Raper, G. P., 1999. "Interactions between trees and groundwaters in recharge and discharge areas - A survey of Western Australian sites," Agricultural Water Management, Elsevier, vol. 39(2-3), pages 91-113, February.
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. 228 – Majority opinion
      by David Pannell in Pannell Discussions on 2012-11-22 06:31:54

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    1. Pannell, David J. & Ridley, Anna M., 2006. "A framework to select policy tools for dryland salinity," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 139889, Australian Agricultural and Resource Economics Society.
    2. Pannell, David J., 2001. "Dryland salinity: economic, scientific, social and policy dimensions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(4), December.
    3. Jeff Bennett, 2005. "Australasian environmental economics: contributions, conflicts and 'cop-outs' ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(3), pages 243-261, September.
    4. Pannell, David J. & Roberts, Anna M. & Park, Geoff & Alexander, Jennifer, 2013. "Improving environmental decisions: A transaction-costs story," Ecological Economics, Elsevier, vol. 88(C), pages 244-252.
    5. Kingwell, Ross & John, Michele, 2007. "The influence of farm landscape shape on the impact and management of dryland salinity," Agricultural Water Management, Elsevier, vol. 89(1-2), pages 29-38, April.
    6. Kingwell, Ross S., 2003. "Dryland Salinity: Spatial Impacts and Farmers' Options," 14th Congress, Perth, Western Australia, August 10-15, 2003 24391, International Farm Management Association.
    7. Mullen, John D. & Vernon, Don & Fishpool, Ken I., 2000. "Agricultural extension policy in Australia: public funding and market failure," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(4), December.
    8. Graham, Tennille & White, Benedict & Pannell, David J., 2003. "Efficiency Policies for Salinity Management: Preliminary Research from a Spatial and Dynamic Metamodel," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57879, Australian Agricultural and Resource Economics Society.
    9. Harris, E., 2002. "Historical regulation of Victoria's water sector: A case of government failure?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(3), September.
    10. Doole, Graeme J. & Pannell, David J., 2009. "Evaluating combined land conservation benefits from perennial pasture: lucerne ( Medicago sativa L.) for management of dryland salinity and herbicide resistance in Western Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(2), June.
    11. Murtough, Greg & Aretino, Barbara & Matysek, Anna, 2002. "Creating Markets for Ecosystem Services," Staff Research Papers 31912, Productivity Commission.
    12. repec:ags:aare05:137931 is not listed on IDEAS
    13. Pannell, David J. & Roberts, Anna M., 2010. "Australia’s National Action Plan for Salinity and Water Quality: a retrospective assessment," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), December.
    14. Jones, Randall E., 2005. "Sustainability and integrated weed management in Australian winter cropping systems: a bioeconomic analysis," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137930, Australian Agricultural and Resource Economics Society.
    15. Bathgate, Andrew & Pannell, David J., 2002. "Economics of deep-rooted perennials in western Australia," Agricultural Water Management, Elsevier, vol. 53(1-3), pages 117-132, February.
    16. Ross Kingwell & Michele John & Michael Robertson, 2008. "A review of a community-based approach to combating land degradation: dryland salinity management in Australia," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 10(6), pages 899-912, December.
    17. Mullen, John D., 2001. "An Economic Persective On Land Degradation Issues," Research Reports 27999, New South Wales Department of Primary Industries Research Economists.

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    Keywords

    Land Economics/Use;

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