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The Impact of Water and Soil Salinity on Water Market Trading in the Southern Murray–Darling Basin

Author

Listed:
  • Juliane Haensch

    (Global Food Studies, University of Adelaide, Adelaide 5000, Australia)

  • Sarah Ann Wheeler

    (Global Food Studies, University of Adelaide, Adelaide 5000, Australia†Adjunct, School of Commerce, University of South Australia, Adelaide 5000, Australia)

  • Alec Zuo

    (Global Food Studies, University of Adelaide, Adelaide 5000, Australia†Adjunct, School of Commerce, University of South Australia, Adelaide 5000, Australia)

  • Henning Bjornlund

    (#x2020;Adjunct, School of Commerce, University of South Australia, Adelaide 5000, Australia)

Abstract

Irrigators in the Murray–Darling Basin (MDB) of Australia face a salinity triple threat, namely: dryland salinity, surface-water, and groundwater salinity. Water trading has now been adopted to the point where it is a common adaptation tool used by the majority of irrigators in the Basin. This study uses a number of unique water market and spatial databases to investigate the association between the severity and extent of areas which suffer from salinity and permanent trade over time, holding other regional characteristics constant. It was found that larger volumes of permanent water were likely to be sold from areas suffering from higher dryland salinity. In addition, increases in the concentration of groundwater salinity was found to decrease volumes of surface-water entitlements sold, providing evidence that groundwater entitlements (where they are viable substitutes) have been increasingly used as substitutes for surface-water entitlements in recent years. Other key influences on water sales included water market prices and net rainfall.

Suggested Citation

  • Juliane Haensch & Sarah Ann Wheeler & Alec Zuo & Henning Bjornlund, 2016. "The Impact of Water and Soil Salinity on Water Market Trading in the Southern Murray–Darling Basin," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(01), pages 1-26, March.
    • Handle: RePEc:wsi:wepxxx:v:02:y:2016:i:01:n:s2382624x16500041
    DOI: 10.1142/S2382624X16500041
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    References listed on IDEAS

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    Cited by:

    1. Guy M. Robinson & Bingjie Song, 2023. "Managing Water for Environmental Provision and Horticultural Production in South Australia’s Riverland," Sustainability, MDPI, vol. 15(15), pages 1-20, July.
    2. 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.
    3. 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.
    4. Sarah Ann Wheeler & Alec Zuo & John Kandulu, 2021. "What Water are We Really Pumping? The Nature and Extent of Surface and Groundwater Substitutability in Australia and Implications for Water Management Policies," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(4), pages 1550-1570, December.
    5. Sarah Ann Wheeler, 2022. "Debunking Murray‐Darling Basin water trade myths," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(4), pages 797-821, October.
    6. de Bonviller, Simon & Wheeler, Sarah Ann & Zuo, Alec, 2020. "The dynamics of groundwater markets: Price leadership and groundwater demand elasticity in the Murrumbidgee, Australia," Agricultural Water Management, Elsevier, vol. 239(C).

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