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Market Mechanisms for Recovering Water in the Murray-Darling Basin

Author

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  • Productivity Commission

    (Productivity Commission)

Abstract

The Productivity Commission has made recommendations on how the Australian Government’s buyback of water entitlements in the Murray Darling Basin could be improved, in a report released today. The buyback and a larger irrigation infrastructure program are being used to recover water for the environment, and ease the transition to the much lower water diversion levels expected under a Basin Plan. The report raises some concerns about aspects of the design and sequencing of the strategy, noting problems in having commenced the buyback before the Basin Plan is ratified. However, Commissioner Neil Byron said ‘There is still much that can be done to improve the recovery and management of water for the environment in the Basin’.

Suggested Citation

  • Productivity Commission, 2010. "Market Mechanisms for Recovering Water in the Murray-Darling Basin," Research Reports, Productivity Commission, Government of Australia, number 40, January.
    • Handle: RePEc:ris:prodcs:0040
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    File URL: http://www.pc.gov.au/__data/assets/pdf_file/0019/96004/water-recovery-report.pdf
    File Function: Full pdf file
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    File URL: http://www.pc.gov.au/projects/study/water-recovery/report
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    Citations

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    Cited by:

    1. Edwards, Geoff W., 2012. "The Desalination Plant, The North-South Pipeline And The Welfare Of Melburnians," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124292, Australian Agricultural and Resource Economics Society.
    2. Marshall, Graham R., 2013. "Transaction Costs, Collective Action And Adaptation In Managing Social-Ecological Systems," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152166, Australian Agricultural and Resource Economics Society.
    3. Neal Hughes & Manannan Donoghoe & Linden Whittle, 2020. "Farm Level Effects of On‐Farm Irrigation Infrastructure Programs in the Southern Murray–Darling Basin," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(4), pages 494-516, December.
    4. Lin Crase & Bethany Cooper, 2017. "The Political Economy of Drought: Legacy and Lessons from Australia's Millennium Drought," Economic Papers, The Economic Society of Australia, vol. 36(3), pages 289-299, September.
    5. 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.
    6. Truong, Chi H. & Drynan, Ross G., 2013. "Capacity sharing enhances efficiency in water markets involving storage," Agricultural Water Management, Elsevier, vol. 122(C), pages 46-52.
    7. Horne, Avril & Freebairn, John W. & O'Donnell, Erin, 2011. "Establishing and managing the environmental water reserve – the interaction between different government policies," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100561, Australian Agricultural and Resource Economics Society.
    8. Lin Crase & Nicholas Pawsey & Sue O'Keefe, 2013. "A Note on Contradictions in Australian Water Policy," Economic Papers, The Economic Society of Australia, vol. 32(3), pages 353-359, September.
    9. Grafton, R. Quentin & Horne, James, 2014. "Water markets in the Murray-Darling Basin," Agricultural Water Management, Elsevier, vol. 145(C), pages 61-71.
    10. Hone, Simon, 2011. "Corner solutions in the allocation of environmental water: an application of inframarginal economics," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100560, Australian Agricultural and Resource Economics Society.
    11. Lin Crase, 2017. "Policy Nook: "When Scarcity Ends, Policy Reform Loses Steam: Comments on Australian Water Reform and Political Backsliding"," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 1-8, July.
    12. Onil Banerjee, 2015. "Investing in recovering water for the environment in Australia's Murray-Darling Basin," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 31(4), pages 701-717, December.
    13. R. Quentin Grafton & Gary D. Libecap & Eric C. Edwards & R. J. O’Brien & Clay Landry, 2010. "Water Scarcity and Water Markets: A Comparison of Institutions and Practices in the Murray-Darling Basin of Australia and the Western US," ICER Working Papers 28-2010, ICER - International Centre for Economic Research.
    14. 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.
    15. James Horne, 2014. "The 2012 Murray-Darling Basin Plan - issues to watch," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 30(1), pages 152-163, March.
    16. R. Quentin Grafton & Gary D. Libecap & Eric C. Edwards & R. J. (Bob) O'Brien & Clay Landry, 2011. "A Comparative Assessment of Water Markets: Insights from the Murray-Darling Basin of Australia and the Western US," ICER Working Papers 08-2011, ICER - International Centre for Economic Research.
    17. Peter B. Dixon & Maureen T. Rimmer & Glyn Wittwer, 2011. "Saving the Southern Murray‐Darling Basin: The Economic Effects of a Buyback of Irrigation Water," The Economic Record, The Economic Society of Australia, vol. 87(276), pages 153-168, March.
    18. Graham R. Marshall, 2020. "Evaluating Adaptive Efficiency in Environmental Water Recovery: Application of a Framework for Institutional Cost-Effectiveness Analysis," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 6(02), pages 1-28, April.
    19. Steve Easton & Sean Pinder, 2022. "Measuring the price of Australian water," Australian Journal of Management, Australian School of Business, vol. 47(1), pages 24-33, February.

    More about this item

    Keywords

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    JEL classification:

    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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