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Investing in irrigation development in North West Queensland, Australia

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  • Glyn Wittwer
  • Onil Banerjee

Abstract

type="main" xml:id="ajar12057-abs-0001"> This study uses a dynamic multi-regional Computable General Equilibrium model of the Australian economy to examine the impacts of developing irrigated agriculture in remote North West Queensland. A potential investment and operational scenario is implemented using three alternative forecast baselines. In the first run using a business-as-usual baseline, there is a welfare loss from irrigation development, even with an optimistic shift in farm productivity and factor endowments in North West Queensland. In the second run, baseline demand for Australia's exports is assumed to grow at a faster rate and there is a small welfare gain. Simulating climate change impacts on crop yields, the forecast baseline of the third run includes a gradual reduction in farmland productivity in southern Australia. The simulations show the impacts of both supply and demand shifts on the welfare outcome, but on balance, clear welfare gains do not arise from the potential irrigation development.

Suggested Citation

  • Glyn Wittwer & Onil Banerjee, 2015. "Investing in irrigation development in North West Queensland, Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(2), pages 189-207, April.
    • Handle: RePEc:bla:ajarec:v:59:y:2015:i:2:p:189-207
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    File URL: http://hdl.handle.net/10.1111/ajar.2015.59.issue-2
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    Cited by:

    1. Onil Banerjee & Martin Cicowiez & Mark Horridge & Renato Vargas, 2016. "A Conceptual Framework for Integrated Economic-Environmental Modelling," CEDLAS, Working Papers 0202, CEDLAS, Universidad Nacional de La Plata.
    2. Scandizzo, Pasquale Lucio & Damania, Richard, 2025. "Modelling global water policies," Journal of Policy Modeling, Elsevier, vol. 47(2), pages 407-427.
    3. Glyn Wittwer, 2025. "GlobeTERM, combining multi-country and sub-national detail," Centre of Policy Studies/IMPACT Centre Working Papers g-350, Victoria University, Centre of Policy Studies/IMPACT Centre.
    4. Onil Banerjee & Martín Cicowiez & Juan Manuel Torres-Rojo & Kenneth J. Bagstad & Renato Vargas & Bram Edens & Jacob Salcone & Elsa Marcela Begne de Larrea & Mónica Lopez-Conlon & César Rodríguez-Orteg, 2025. "Integrating Quantitative Macroeconomic and Ecosystem Service Modeling Methods to Assess Conservation Programs in Mexico," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 88(7), pages 1995-2021, July.
    5. Arndt Feuerbacher & Jonas Luckmann, 2023. "Labour‐saving technologies in smallholder agriculture: An economy‐wide model with field operations," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(1), pages 56-82, January.
    6. Banerjee, Onil & Alavalapati, Janaki R.R. & Lima, Eirivelthon, 2016. "A framework for ex-ante analysis of public investment in forest-based development: An application to the Brazilian Amazon," Forest Policy and Economics, Elsevier, vol. 73(C), pages 204-214.
    7. Wittwer, Glyn, 2022. "Preparing a multi-country, sub-national CGE model: EuroTERM including Ukraine," Conference papers 333470, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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