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An Economic Analysis of the Eutrophication Problem of the Barwon and Darling Rivers in New South Wales

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  • Chris M. Alaouze

Abstract

The focus of the paper is the 1000 km toxic blue‐green algal bloom which afflicted the Barwon and Darling Rivers in 1991. Factors which contributed to the bloom are increased water use for irrigation, drought and nutrient pollution, mainly phosphorus from sewage treatment plants and other point sources. A model for finding the optimal allocation of nutrient removal amongst point sources is developed in which the blue‐green algal externality impacts on a number of locations on the rivers. The cost of pollution function is unknown but our results suggest that if the marginal costs of phosphorus removal are low, the equilibrium level of phosphorus at each location is likely to be below that which reduces the recreational value of the rivers.

Suggested Citation

  • Chris M. Alaouze, 1999. "An Economic Analysis of the Eutrophication Problem of the Barwon and Darling Rivers in New South Wales," Australian Economic Papers, Wiley Blackwell, vol. 38(1), pages 51-63, January.
  • Handle: RePEc:bla:ausecp:v:38:y:1999:i:1:p:51-63
    DOI: 10.1111/1467-8454.00041
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    Cited by:

    1. Thanh Viet Nguyen & Lars Ravn-Jonsen & Niels Vestergaard, 2016. "Marginal Damage Cost of Nutrient Enrichment: The Case of the Baltic Sea," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 64(1), pages 109-129, May.
    2. Basak Bayramoglu, 2006. "Transboundary Pollution in the Black Sea: Comparison of Institutional Arrangements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 35(4), pages 289-325, December.

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