Integrating rural and urban water markets in south east Australia: Preliminary analysis
The conference paper, 'Integrating rural and urban water markets in south east Australia: Preliminary analysis' by Gavan Dwyer, Paul Loke, David Appels, Susan Stone and Deborah Peterson, was presented to the OECD Workshop on Agriculture and Water: Sustainability, Markets and Policies Adelaide, 14-18 November 2005. The trade of water in Australia is constrained and generally limited to irrigators, with other industries and households excluded. A regional general equilibrium model of the Australian economy (TERM-Water) is used to undertake a preliminary analysis of the effects of expanding the trade of water in south east Australia to include both irrigators and urban users. The focus is on the urban centres of Adelaide, Canberra and Melbourne, and the major irrigation districts in the southern Murray-Darling Basin and Gippsland. Losses from a hypothetical reduction in water availability to gross regional product and household demand are reduced when water trade is allowed. The extent to which these losses are reduced depends on the extent to which trade is allowed and the differing water uses in each trading region. The results of this preliminary modelling show that net gains are greatest, and the costs to industries and regions are generally more dissipated, when trade is unconstrained. When regions with relatively low levels of water consumption (such as Adelaide and Canberra) face shortfalls in water availability and trade with regions that use large volumes of water (such as irrigators in the southern Murray-Darling Basin), they have little effect on traded prices and quantities. The opposite is true, however, when large water users experience shortages. These broad patterns hold when all regions experience the same hypothetical reduction in water availability. *The views expressed in this paper do not necessarily reflect those of the Productivity Commission.
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Postal: Level 28, 35 Collins St, Melbourne Victoria 3000|
Phone: 61 3 9653 2100
Fax: 61 3 9653 2199
Web page: http://www.pc.gov.au/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- D. Peterson & G. Dwyer & D. Appels & J. Fry, 2005.
"Modelling Water Trade in the Southern Murray-Darling Basin,"
- Peterson, Deborah C. & Dwyer, Gavan & Appels, David & Fry, Jane, 2004. "Modelling Water Trade in the Southern Murray-Darling Basin," Staff Working Papers 31925, Productivity Commission.
- Geoff Edwards, 2003. "Water Policy: Setting the Scene," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 36(2), pages 193-202.
When requesting a correction, please mention this item's handle: RePEc:ags:prodwp:31909. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.