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Demand For Water in the Murray Valley, New South Wales: An Application of Linear Programming

Author

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  • Chewings, R.A.
  • Pascoe, Sean

Abstract

The move to decentralize and develop the inner areas of New South Wales in the first half of the century resulted in the development of several irrigation regions along the Murrumbidgee and Murray Rivers. Water was supplied to these regions at a low price, resulting in overuse of water and consequently environmental degradation. The increasing emphasis on the user-pays principle in the 1980s and an increase in concern as to the environmental damage in the region has resulted in a review of attitudes by the water supplying authorities. The provision of subsidized water is no longer considered desirable and proposals have been put forward to increase the price of water. in this paper, the results of a study to estimate the responsiveness of water demand to price in the Murray Valley are presented. The results indicate that a policy of cost recovery may result in a short term economic loss to the region, depending on the regime of prevailing commodity prices.

Suggested Citation

  • Chewings, R.A. & Pascoe, Sean, 1988. "Demand For Water in the Murray Valley, New South Wales: An Application of Linear Programming," 1988 Conference (32nd), February 8-11, 1988, Melbourne, Australia 143791, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare88:143791
    DOI: 10.22004/ag.econ.143791
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    Cited by:

    1. Qureshi, Muhammad Ejaz & Mallawaarachchi, Thilak & Wegener, Malcolm K. & Bristow, Keith L. & Charlesworth, Philip B. & Lisson, Shaun N., 2001. "Economic evaluation of alternative irrigation practices for sugarcane production in the Burdekin Delta," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125867, Australian Agricultural and Resource Economics Society.
    2. Qureshi, Muhammad Ejaz & Arunakumaren, J. & Bajracharya, K. & Wegener, Malcolm K. & Qureshi, S.E. & Bristow, Keith L., 2002. "Economic and environmental impacts of groundwater management scenarios in Burdekin Delta," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 125148, Australian Agricultural and Resource Economics Society.
    3. Hall, Nigel H. & Mallawaarachchi, Thilak & Batterham, Robert L., 1991. "The Market for Irrigation Water: A Modelling Approach," 1991 Conference (35th), February 11-14, 1991, Armidale, Australia 145889, Australian Agricultural and Resource Economics Society.

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