IDEAS home Printed from https://ideas.repec.org/a/eee/agiwat/v317y2025ics0378377425003233.html

Sensitivity of agricultural outcomes to water allocation scenarios under changing climate in the Murray-Darling Basin, Australia

Author

Listed:
  • Jalilov, Shokhrukh-Mirzo
  • Watto, Muhammad Arif
  • Robertson, David E.
  • Wahid, Shahriar M.
  • Shokri, Ashkan

Abstract

Water managers in the Murray-Darling Basin (MDB) face increasing challenges in balancing agricultural productivity, environmental sustainability, and economic efficiency amid climate uncertainty. While prior studies have explored water allocation mechanisms, limited research has systematically assessed the sensitivity of agricultural outcomes to different allocation scenarios under changing climate conditions. This study addresses this gap using a hydro-economic optimization model for the Macquarie catchment of the MDB. The model integrates climate projections, agricultural water demand, and economic factors to evaluate six climate scenarios: Historical, Just Wet, Just Dry, Hot and Wet, Just Hot, and Hot and Dry. It also examines three water allocation policies: Baseline, Increased Environmental Flows, and Increased Irrigation Flows. Incorporating detailed data on crop water needs, seasonal variability, and economic returns across four economic zones, the model assesses both seasonal adaptations and annual shifts in agricultural practices. The results demonstrate the sensitivity of agricultural performance to both climate conditions and adaptation policies. Irrigation-focused water reallocation consistently leads to better outcomes compared to the baseline under the same climate scenarios, with all water allocation scenarios showing increases in agricultural outcomes under wetter climate conditions and decreases under drier conditions. Significant spatial and temporal variations are observed, with high-value horticultural areas exhibiting greater resilience than broadacre farming regions. This study provides a robust framework for evaluating trade-offs between agricultural productivity, economic efficiency, and environmental sustainability under climate change. It offers critical insights for policymakers in the MDB and has broader applications for other agricultural basins globally.

Suggested Citation

  • Jalilov, Shokhrukh-Mirzo & Watto, Muhammad Arif & Robertson, David E. & Wahid, Shahriar M. & Shokri, Ashkan, 2025. "Sensitivity of agricultural outcomes to water allocation scenarios under changing climate in the Murray-Darling Basin, Australia," Agricultural Water Management, Elsevier, vol. 317(C).
  • Handle: RePEc:eee:agiwat:v:317:y:2025:i:c:s0378377425003233
    DOI: 10.1016/j.agwat.2025.109609
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0378377425003233
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.agwat.2025.109609?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Grafton, R. Quentin & Horne, James, 2014. "Water markets in the Murray-Darling Basin," Agricultural Water Management, Elsevier, vol. 145(C), pages 61-71.
    2. Maksud Bekchanov & Claudia Ringler & Anik Bhaduri & Marc Jeuland, 2015. "How would the Rogun Dam affect water and energy scarcity in Central Asia?," Water International, Taylor & Francis Journals, vol. 40(5-6), pages 856-876, September.
    3. John Quiggin & David Adamson & Sarah Chambers & Peggy Schrobback, 2010. "Climate Change, Uncertainty, and Adaptation: The Case of Irrigated Agriculture in the Murray–Darling Basin in Australia," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(4), pages 531-554, December.
    4. repec:bla:canjag:v:58:y:2010:i:s1:p:531-554 is not listed on IDEAS
    5. Grafton, Rupert & Jiang, Qiang, 2011. "Economic effects of water recovery on irrigated agriculture in the Murray-Darling Basin," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(4), pages 1-13.
    6. Bekchanov, Maksud & Ringler, C. & Bhaduri, A. & Jeuland, M., "undated". "How would the Rogun Dam affect water and energy scarcity in Central Asia?," Papers published in Journals (Open Access) H047222, International Water Management Institute.
    7. Daniel Crespo & Jose Albiac & Taher Kahil & Encarna Esteban & Safa Baccour, 2019. "Tradeoffs between Water Uses and Environmental Flows: A Hydroeconomic Analysis in the Ebro Basin," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 33(7), pages 2301-2317, May.
    8. Glyn Wittwer, 2011. "Confusing Policy and Catastrophe: Buybacks and Drought in the Murray–Darling Basin," Economic Papers, The Economic Society of Australia, vol. 30(3), pages 289-295, September.
    9. Yatawara, Tissa & Millward-Brown, Ian, 1997. "Modelling the Economic Impact of Environmental Flow Policies on the Macquarie Regional Economy," 1997 Conference (41st), January 22-24, 1997, Gold Coast, Australia 136836, Australian Agricultural and Resource Economics Society.
    10. Akter, Sonia & Grafton, R. Quentin & Merritt, Wendy S., 2014. "Integrated hydro-ecological and economic modeling of environmental flows: Macquarie Marshes, Australia," Agricultural Water Management, Elsevier, vol. 145(C), pages 98-109.
    11. Kirby, Mac & Bark, Rosalind & Connor, Jeff & Qureshi, M. Ejaz & Keyworth, Scott, 2014. "Sustainable irrigation: How did irrigated agriculture in Australia's Murray–Darling Basin adapt in the Millennium Drought?," Agricultural Water Management, Elsevier, vol. 145(C), pages 154-162.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zuo, Alec & Qiu, Feng & Wheeler, Sarah Ann, 2019. "Examining volatility dynamics, spillovers and government water recovery in Murray-Darling Basin water markets," Resource and Energy Economics, Elsevier, vol. 58(C).
    2. R. Quentin Grafton, 2017. "Editorial — Water Reform and Planning in the Murray–Darling Basin, Australia," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 1-18, July.
    3. Claire Settre & Jeff Connor & Sarah Ann Wheeler, 2017. "Reviewing the Treatment of Uncertainty in Hydro-economic Modeling of the Murray–Darling Basin, Australia," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 1-35, July.
    4. Siyu Yue & Huaien Li & Fengmin Song, 2023. "Temporal–Spatial Variations in the Economic Value Produced by Environmental Flows in a Water Shortage Area in Northwest China," Sustainability, MDPI, vol. 15(4), pages 1-17, February.
    5. Zulfiya Suleimenova, 2020. "Water security in Central Asia and Southern Caucasus," Asia-Pacific Sustainable Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 27(1), pages 75-93, June.
    6. Foster, T. & Brozović, N., 2018. "Simulating Crop-Water Production Functions Using Crop Growth Models to Support Water Policy Assessments," Ecological Economics, Elsevier, vol. 152(C), pages 9-21.
    7. Wheeler, Sarah Ann & Zuo, Alec & Bjornlund, Henning, 2014. "Investigating the delayed on-farm consequences of selling water entitlements in the Murray-Darling Basin," Agricultural Water Management, Elsevier, vol. 145(C), pages 72-82.
    8. Morrison, Mark & Wheeler, Sarah Ann & Hatton MacDonald, Darla, 2012. "Towards a more nuanced discussion of the net-benefits of sharing water in the Murray-Darling Basin," AFBM Journal, Australasian Farm Business Management Network, vol. 8(02), pages 1-12, April.
    9. Allyson Williams & Neil White & Shahbaz Mushtaq & Geoff Cockfield & Brendan Power & Louis Kouadio, 2015. "Quantifying the response of cotton production in eastern Australia to climate change," Climatic Change, Springer, vol. 129(1), pages 183-196, March.
    10. Magalhaes, M. & Ringler, C. & Verma, Shilp & Schmitter, Petra, 2021. "Accelerating rural energy access for agricultural transformation: contribution of the CGIAR Research Program on Water, Land and Ecosystems to transforming food, land and water systems in a climate crisis," IWMI Books, Reports H050910, International Water Management Institute.
    11. David Adamson & Adam Loch, 2018. "Achieving environmental flows where buyback is constrained," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(1), pages 83-102, January.
    12. Grafton, Rupert Quentin, . "Policy review of water reform in the Murray– Darling Basin, Australia: the “do’s” and “do’nots”," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(01).
    13. Parkinson, Simon C. & Makowski, Marek & Krey, Volker & Sedraoui, Khaled & Almasoud, Abdulrahman H. & Djilali, Ned, 2018. "A multi-criteria model analysis framework for assessing integrated water-energy system transformation pathways," Applied Energy, Elsevier, vol. 210(C), pages 477-486.
    14. Jacob D. Petersen-Perlman & Itay Fischhendler, 2018. "The weakness of the strong: re-examining power in transboundary water dynamics," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 18(2), pages 275-294, April.
    15. R. Quentin Grafton & James Horne & Sarah Ann Wheeler, 2016. "On the Marketisation of Water: Evidence from the Murray-Darling Basin, Australia," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 30(3), pages 913-926, February.
    16. Hassan, Wasim & Manzoor, Talha & Jaleel, Hassan & Muhammad, Abubakr, 2021. "Demand-based water allocation in irrigation systems using mechanism design: A case study from Pakistan," Agricultural Water Management, Elsevier, vol. 256(C).
    17. Sarah Ann Wheeler & Ying Xu & Alec Zuo, 2020. "Modelling the climate, water and socio-economic drivers of farmer exit in the Murray-Darling Basin," Climatic Change, Springer, vol. 158(3), pages 551-574, February.
    18. Juliane Haensch & Sarah Ann Wheeler & Alec Zuo, 2021. "Explaining permanent and temporary water market trade patterns within local areas in the southern Murray–Darling Basin," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(2), pages 318-348, April.
    19. Zeleke, Ketema & Luckett, David J., 2025. "Irrigated agricultural production dynamics in response to rainfall variability and water policy reforms in the southern Murray-Darling Basin of Australia," Agricultural Water Management, Elsevier, vol. 315(C).
    20. Mark Zeitoun & Ana Elisa Cascão & Jeroen Warner & Naho Mirumachi & Nathanial Matthews & Filippo Menga & Rebecca Farnum, 2017. "Transboundary water interaction III: contest and compliance," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 17(2), pages 271-294, April.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:agiwat:v:317:y:2025:i:c:s0378377425003233. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/agwat .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.