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Valuing Benefits of Increasing Irrigation Water Use Efficiency

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  • Gyles, Oliver

Abstract

A false expectation based on the notion that it is easy to raise water use efficiency, and that all increases in water use efficiency will also increase net social welfare, will lead to gross underestimation of the economic impact of reduced irrigation allocations in the Murray-Darling Basin. A conventional benefit:cost analysis of policy options founded on an understanding of biophysical processes, sound accounting principles, a knowledge of the appropriate response functions and the economics of best operating conditions will reduce the potential for government failure. Some myths, pitfalls and traps for the unwary analyst or policy maker are outlined.

Suggested Citation

  • Gyles, Oliver, 2003. "Valuing Benefits of Increasing Irrigation Water Use Efficiency," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57880, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare03:57880
    DOI: 10.22004/ag.econ.57880
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    References listed on IDEAS

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    1. Randall, Alan, 1981. "Property Entitlements And Pricing Policies For A Maturing Water Economy," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 25(3), pages 1-26, December.
    2. Mike Young, 2002. "Blueprint for a Living Continent," Natural Resource Management Economics 02_008, Policy and Economic Research Unit, CSIRO Land and Water, Adelaide, Australia.
    3. Mike Young, 2002. "A preliminary Assessment of the economic and social implications of Environmental Flow Scenarios for the Murray River System," Natural Resource Management Economics 02_009, Policy and Economic Research Unit, CSIRO Land and Water, Adelaide, Australia.
    4. Alan Randall, 1981. "Property Entitlements And Pricing Policies For A Maturing Water Economy," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 25(3), pages 195-220, December.
    5. John Quiggin, 1988. "Murray River Salinity—An Illustrative Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(3), pages 635-645.
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    Cited by:

    1. Alistair Watson, 2003. "Approaches to Increasing River Flows," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 36(2), pages 213-224, June.
    2. Lin Crase & Suzanne O’Keefe, 2009. "The paradox of national water savings: A critique of “Water for the Future”," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 16(1), pages 45-62.

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