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Mixed bag: Simulating market-based instruments for water quality and quantity in the Upper Waikato

Author

Listed:
  • Sinner, Jim
  • Fenemor, Andrew
  • Anastasiadis, Simon

Abstract

We designed and implemented participatory computer simulations in three workshops in New Zealand’s Upper Waikato catchment to learn how market-based instruments (MBIs) might improve freshwater outcomes when managing water and land resources within limits. An Excel-based platform was built to simulate, in stakeholder workshops, the use of transferable permits and user charges for both water quantity and water quality in the Upper Waikato catchment. Each participant managed a hypothetical property in a simplified catchment that included seven farms, a pulp mill, district council, and a hydro-electric company. Based on profit schedules and policy settings, participants made choices about production intensity, land use change and trading of water and/or nutrient allowances. The simulations highlighted the social and cultural context in which MBIs must operate, and how that context influences the outcomes that we can expect from MBIs. Participants found the simulations to be a valuable learning experience.

Suggested Citation

  • Sinner, Jim & Fenemor, Andrew & Anastasiadis, Simon, 2012. "Mixed bag: Simulating market-based instruments for water quality and quantity in the Upper Waikato," 2012 Conference, August 31, 2012, Nelson, New Zealand 160054, New Zealand Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:nzar12:160054
    DOI: 10.22004/ag.econ.160054
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    References listed on IDEAS

    as
    1. Tisdell, John, 2011. "Water markets in Australia: an experimental analysis of alternative market mechanisms," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(4), pages 1-18.
    2. Sinner, Jim & Fenemor, Andrew & Palmer, James, 2005. "The adoption of market-based instruments for resource management: Three case studies," 2005 Conference, August 26-27, 2005, Nelson, New Zealand 98495, New Zealand Agricultural and Resource Economics Society.
    3. R. Quentin Grafton & Gary Libecap & Samuel McGlennon & Clay Landry & Bob O'Brien, 2011. "An Integrated Assessment of Water Markets: A Cross-Country Comparison," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 5(2), pages 219-239, Summer.
    4. Hanna L. Breetz & Karen Fisher-Vanden & Hannah Jacobs & Claire Schary, 2005. "Trust and Communication: Mechanisms for Increasing Farmers’ Participation in Water Quality Trading," Land Economics, University of Wisconsin Press, vol. 81(2).
    Full references (including those not matched with items on IDEAS)

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