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Rent-seeking behaviour and regulatory capture in the Murray-Darling Basin, Australia

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  • R. Quentin Grafton
  • John Williams

Abstract

We examine water governance in the Murray-Darling Basin using the frameworks of rent-seeking and regulatory capture. These frameworks are used to evaluate two government programmes intended to ensure an environmentally sustainable level of water diversions in the basin: targeted one-on-one purchases of water entitlements from designated sellers; and subsidies for irrigation infrastructure to increase irrigation efficiency. Deficiencies in delivering the stated environmental goals of both programmes, and questions about their ‘value for money’, are highlighted. Specific recommendations are provided about how to mitigate both rent-seeking and regulatory capture of water reform initiatives in large river basins.

Suggested Citation

  • R. Quentin Grafton & John Williams, 2020. "Rent-seeking behaviour and regulatory capture in the Murray-Darling Basin, Australia," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 36(2-3), pages 484-504, March.
    • Handle: RePEc:taf:cijwxx:v:36:y:2020:i:2-3:p:484-504
    DOI: 10.1080/07900627.2019.1674132
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    Cited by:

    1. Dumbrell, Nikki P. & Adamson, David & Wheeler, Sarah Ann, 2020. "Is social licence a response to government and market failures? Evidence from the literature," Resources Policy, Elsevier, vol. 69(C).
    2. Yu Tu & Benhong Peng & Ehsan Elahi & Weiku Wu, 2020. "Initiator or Intermediary? A Case Study on Network Relation of Environmental Regulatory Capture in China," IJERPH, MDPI, vol. 17(24), pages 1-19, December.
    3. Qiezeng Yuan, 2021. "How to Restrain Regulatory Capture and Promote Green Innovation in China. An Analysis Based on Evolutionary Game Theory," Sustainability, MDPI, vol. 13(17), pages 1-20, August.

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