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The responsiveness of Australian farm performance to changes in irrigation water use and trade

Author

Listed:
  • Bell, Rosalyn
  • Gali, Jyothi
  • Gretton, Paul
  • Redmond, Ineke

Abstract

The flexibility of farms to respond to changing economic or environmental conditions has received attention in recent years, particularly in the context of changes in the availability and pricing of irrigation water. This study uses a new unit record data set of Australian farms and a generalised profit-function framework to assess the links between farm performance and water use practices, involvement in water trading and other farm characteristics. Amongst other findings, the study provides experimental estimates of the responsiveness of the demand for irrigation water to price changes and the impact of farmers either buying or selling water on farm profits, after controlling for other factors.

Suggested Citation

  • Bell, Rosalyn & Gali, Jyothi & Gretton, Paul & Redmond, Ineke, 2007. "The responsiveness of Australian farm performance to changes in irrigation water use and trade," 2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand 9454, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare07:9454
    DOI: 10.22004/ag.econ.9454
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    Cited by:

    1. Loch, Adam, 2013. "Sequential decision-making: Theory and evidence for irrigator water allocation trade participation and volumetric choices," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152199, Australian Agricultural and Resource Economics Society.
    2. Wheeler, Sarah Ann & Bjornlund, Henning & Shanahan, Martin & Zuo, Alec, 2008. "Price elasticity of water allocations demand in the Goulburn–Murray Irrigation District," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(1), pages 1-19.
    3. Hughes, Neal, 2009. "Management of irrigation water storages: carryover rights and capacity sharing," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 47642, Australian Agricultural and Resource Economics Society.
    4. 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.
    5. Hughes, Neal, 2011. "Estimating irrigation farm production functions using ABARES irrigation survey data," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100564, Australian Agricultural and Resource Economics Society.
    6. Zuo, Alec & Nauges, Celine & Wheeler, Sarah, 2012. "Water trading as a risk-management tool for farmers: new empirical evidence from the Australian water market," Risk and Sustainable Management Group Working Papers 149885, University of Queensland, School of Economics.
    7. Vicente Ruiz, 2016. "Groundwater Overdraft, Electricity, and Wrong Incentives: Evidence from Mexico," Working Papers 2016.05, FAERE - French Association of Environmental and Resource Economists.

    More about this item

    Keywords

    Farm Management;

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