IDEAS home Printed from https://ideas.repec.org/p/ags/aare09/47642.html
   My bibliography  Save this paper

Management of irrigation water storages: carryover rights and capacity sharing

Author

Listed:
  • Hughes, Neal

Abstract

The intertemporal management of irrigation water involves a consumption-storage decision, where the benefits of using water today are evaluated against the uncertain benefits of storing water for future use. Traditionally in Australia, state governments have centrally managed the major water storages: making decisions on water allocations given prevailing storage levels. However, in practice there are a number of factors which may prevent a centralised approach from achieving an optimal allocation of water. This paper considers in detail two decentralised approaches to storage management: carryover rights and capacity sharing. This paper also presents a quantitative analysis of storage management, involving the application of a stochastic dynamic programming model.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:aare09:47642
    DOI: 10.22004/ag.econ.47642
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/47642/files/Hughes.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.47642?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. David Adamson & Thilak Mallawaarachchi & John Quiggin, 2007. "Climate change and climate uncertainty in the Murray-Darling Basin," Murray-Darling Program Working Papers WP2M07, Risk and Sustainable Management Group, University of Queensland.
    2. 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.
    3. Sarah Wheeler & Henning Bjornlund & Martin Shanahan & Alec Zuo, 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 37-55, March.
    4. Hafi, Ahmed & Heaney, Anna & Beare, Stephen, 2006. "Investment in irreversible irrigation technology under uncertainty," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 139769, Australian Agricultural and Resource Economics Society.
    5. Anna Heaney & Gavan Dwyer & Stephen Beare & Deborah Peterson & Lili Pechey, 2006. "Third-party effects of water trading and potential policy responses ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(3), pages 277-293, September.
    6. Howitt, Richard E. & Reynaud, Arnaud & Msangi, Siwa & Knapp, Keith C., 2002. "Calibrated Stochastic Dynamic Models for Resource Management," 2002 Annual meeting, July 28-31, Long Beach, CA 19620, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Kemp, Adrian & Hafi, Ahmed, 2001. "Benefits of increased irrigation efficiency in the Murrumbidgee Irrigation Area," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125685, Australian Agricultural and Resource Economics Society.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xie, Yang & Zilberman, David, 2015. "Water-Storage Capacities versus Water-Use Efficiency: Substitutes or Complements?," 2015 Conference, August 9-14, 2015, Milan, Italy 211894, International Association of Agricultural Economists.
    2. Marianne LEFEBVRE & Lata GANGADHARAN & Sophie THOYER, 2011. "Do Security-differentiated Water Rights Improve Efficiency?," Working Papers 11-14, LAMETA, Universtiy of Montpellier, revised Jun 2012.
    3. 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.
    4. Loch, Adam & Bjornlund, Henning & Wheeler, Sarah & Connor, Jeff, 2012. "Allocation trade in Australia: a qualitative understanding or irrigator motives and behaviour," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(1), pages 1-19, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. 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.
    4. Brooks, Robert & Harris, Edwyna, 2014. "Price leadership and information transmission in Australian water allocation markets," Agricultural Water Management, Elsevier, vol. 145(C), pages 83-91.
    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. Chi H. Truong, 2014. "A Two Factor Model for Water Prices and Its Implications for Evaluating Real Options and Other Water Price Derivatives," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(1), pages 23-45, March.
    7. Sarah Wheeler & Henning Bjornlund & Martin Shanahan & Alec Zuo, 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 37-55, March.
    8. Robert Brooks & Edwyna Harris & Yovina Joymungul, 2013. "Price clustering in Australian water markets," Applied Economics, Taylor & Francis Journals, vol. 45(6), pages 677-685, February.
    9. Brooks, Robert & Harris, Edwyna, 2008. "Efficiency gains from water markets: Empirical analysis of Watermove in Australia," Agricultural Water Management, Elsevier, vol. 95(4), pages 391-399, April.
    10. Potgieter, Petrus H., 2010. "Water and energy in South Africa – managing scarcity," MPRA Paper 23360, University Library of Munich, Germany.
    11. 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.
    12. Gaydon, D.S. & Meinke, H. & Rodriguez, D. & McGrath, D.J., 2012. "Comparing water options for irrigation farmers using Modern Portfolio Theory," Agricultural Water Management, Elsevier, vol. 115(C), pages 1-9.
    13. Lankford, Bruce, 2012. "Fictions, fractions, factorials and fractures; on the framing of irrigation efficiency," Agricultural Water Management, Elsevier, vol. 108(C), pages 27-38.
    14. Ihli, Hanna Julia & Maart, Syster Christin & Musshoff, Oliver, 2012. "Investment and Disinvestment in Irrigation Technology – An Experimental Analysis of Farmers’ Decision Behavior –," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124532, Agricultural and Applied Economics Association.
    15. Quiggin, John, 2008. "Uncertainty and Climate Change Policy," Economic Analysis and Policy, Elsevier, vol. 38(2), pages 203-210, September.
    16. 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.
    17. Lijuan Zhang & Jinxia Wang & Guangsheng Zhang & Qiuqiong Huang, 2016. "Impact of the methods of groundwater access on irrigation and crop yield in the North China Plain," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 8(4), pages 613-633, November.
    18. Loch, Adam & Bjornlund, Henning & Wheeler, Sarah & Connor, Jeff, 2012. "Allocation trade in Australia: a qualitative understanding or irrigator motives and behaviour," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(1), pages 1-19, March.
    19. 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.
    20. Raffensperger, John F., 2011. "Matching users' rights to available groundwater," Ecological Economics, Elsevier, vol. 70(6), pages 1041-1050, April.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aare09:47642. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.