Economic effects of water recovery on irrigated agriculture in the Murray‐Darling Basin
A key issue facing water planners and policy makers is the cost of reallocating water from extractive uses, such as irrigated agriculture, to environmental flows. To quantify these costs, a framework to analyze the economic trade-offs from water use reductions in irrigated agriculture is developed that has general applications, but is calibrated to Australia’s Murray-Darling Basin. The framework includes an 18-region integrated irrigated agriculture water model of the Murray-Darling Basin that quantifies the impact on irrigated agriculture net profits associated with reductions in surface water extractions. The model shows that substantial reductions in water extractions of up to 40% across the entire Basin impose only a moderate reduction on net profits in irrigated agriculture, Basin-wide. However, the results also indicate that in regions where less profitable irrigation activities dominate, irrigated water use would fall dramatically although net profits would decline by proportionately by much less. The findings suggest that reductions in water diversions in irrigated agriculture at least cost so as to increase environmental flows would: (1) Concentrate the reductions in water extractions by irrigated agriculture in relatively few parts of the Murray-Darling Basin and, principally, on only three less profitable crops; (2) Reduce net profits, both regionally and Basin-wide, but these declines would be proportionally much less than the percentage reductions in water use; and (3) Ensure the present value of foregone net profits in irrigated agriculture is less than the amount currently budgeted by the Australian government to reduce surface water extractions in the Murray-Darling Basin.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 55 (2011)
Issue (Month): 4 (October)
|Contact details of provider:|| Postal: |
Phone: 0409 032 338
Web page: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-8489
More information through EDIRC
|Order Information:||Web: http://ordering.onlinelibrary.wiley.com/subs.asp?ref=1467-8489&doi=10.1111/(ISSN)1467-8489|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Qureshi, M. Ejaz & Shi, Tian & Qureshi, Sumaira E. & Proctor, Wendy, 2009. "Removing barriers to facilitate efficient water markets in the Murray-Darling Basin of Australia," Agricultural Water Management, Elsevier, vol. 96(11), pages 1641-1651, November.
- M. Ejaz Qureshi & Jeff Connor & Mac Kirby & Mohammed Mainuddin, 2007.
"Economic assessment of acquiring water for environmental flows in the Murray Basin ,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 51(3), pages 283-303, 09.
- Qureshi, Muhammad Ejaz & Connor, Jeffery D. & Kirby, Mac & Mainuddin, Mohammed, 2002. "Economic assessment of acquiring water for environmental flows in the Murray Basin," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(3), September.
- Peterson, Deborah C. & Dwyer, Gavan & Appels, David & Fry, Jane, 2004.
"Modelling Water Trade in the Southern Murray-Darling Basin,"
Staff Working Papers
31925, Productivity Commission.
- D. Peterson & G. Dwyer & D. Appels & J. Fry, 2005. "Modelling Water Trade in the Southern Murray-Darling Basin," Urban/Regional 0506007, EconWPA.
- Deborah Peterson & Gavan Dwyer & David Appels & Jane Fry, 2005. "Water Trade in the Southern Murray-Darling Basin," The Economic Record, The Economic Society of Australia, vol. 81(s1), pages S115-S127, 08.
When requesting a correction, please mention this item's handle: RePEc:bla:ajarec:v:55:y:2011:i:4:p:487-499. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.