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A review of CGE modelling of irrigation developments and policies in Australia

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  • Wittwer, Glyn

Abstract

Australia is the driest inhabited continent on earth. Its most important irrigation development is in the Murray-Darling Basin, which is relatively adjacent to the majority of Australia’s population. CGE modelling using TERM-H2O has demonstrated that attempts to restore the balance between water for economic purposes and water for the environment in the basin will have little impact on regional economies. However, substantial public spending has been on inefficient water infrastructure upgrades to appease concerns about regional economic damage. Modelling of the Flinders-Gilbert irrigation scheme proposed in far northern Queensland indicates that it is unlikely to yield net economic benefits. Although in theory there is abundant water that irrigators could use, extreme isolation is among the reasons that the scheme is unlikely to be viable. The Ord River scheme, completed in tropical Western Australia in the early 1970s, has created few jobs relative to construction costs. Research is currently under way on variants of the “Bradfield” scheme. Projects under this scheme aim to use water in remote Queensland for economic purposes.

Suggested Citation

  • Wittwer, Glyn, 2021. "A review of CGE modelling of irrigation developments and policies in Australia," Conference papers 333263, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:333263
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    File URL: https://ageconsearch.umn.edu/record/333263/files/10569.pdf
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    References listed on IDEAS

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    1. Glyn Wittwer & Janine Dixon, 2013. "Effective use of public funding in the Murray-Darling Basin: a comparison of buybacks and infrastructure upgrades," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(3), pages 399-421, July.
    2. Glyn Wittwer & Michael D Young, 2020. "Distinguishing Between Policy, Drought and International Events in the Context of the Murray Darling Basin Plan," Centre of Policy Studies/IMPACT Centre Working Papers g-295, Victoria University, Centre of Policy Studies/IMPACT Centre.
    3. Peter B. Dixon & Maureen T. Rimmer & Glyn Wittwer, 2011. "Saving the Southern Murray‐Darling Basin: The Economic Effects of a Buyback of Irrigation Water," The Economic Record, The Economic Society of Australia, vol. 87(276), pages 153-168, March.
    4. Wittwer, Glyn & Griffith, Marnie, 2011. "Modelling drought and recovery in the southern Murray-Darling basin," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 55(3), pages 1-18, September.
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