IDEAS home Printed from https://ideas.repec.org/p/cse/wpaper/2007-06.html
   My bibliography  Save this paper

Encouraging Revegetation in Australia with a Groundwater Recharge Credit Scheme

Author

Listed:
  • Wendy Proctor
  • Jeffery D Connor
  • John Ward
  • Darla Hatton MacDonald

    () (CSIRO Land and Water, Australia)

Abstract

This paper describes a comprehensive method to design, test and then implement a Payments for Ecosystem Services (PES) framework to combat the environmental consequences of extensive native vegetation clearance in Australia. Clearing of vegetation, primarily due to the expansion of farming areas, has often resulted in regional dryland and irrigation salinity. The market based approach adopted ? a groundwater recharge credit trading scheme ? was designed using empirical data from a social survey and experimental economics. The objective of the trial is to test the cost effectiveness of an incentive based recharge credit trade scheme designed to engage landholders in establishing and managing deep rooted pasture and woody perennials to reduce these adverse salinity impacts. The scheme, based on a voluntary ?cap and trade? approach, allows farmers to meet recharge obligations by land management actions or by trading credits. Assessment of the scheme so far suggests that an incentive for aggregate group outcome achievement included in the design may have motivated higher enrollment rates than would have otherwise resulted. A schedule has been developed relating land management practices and recharge credits. The audited performance based payment system, has provided increased motivation to manage for environmental outcomes compared to the previous policy.

Suggested Citation

  • Wendy Proctor & Jeffery D Connor & John Ward & Darla Hatton MacDonald, 2007. "Encouraging Revegetation in Australia with a Groundwater Recharge Credit Scheme," Socio-Economics and the Environment in Discussion (SEED) Working Paper Series 2007-06, CSIRO Sustainable Ecosystems.
  • Handle: RePEc:cse:wpaper:2007-06
    as

    Download full text from publisher

    File URL: http://www.csiro.au/files/files/pes6.pdf
    File Function: First version, 2007
    Download Restriction: no

    References listed on IDEAS

    as
    1. Schandl, Heinz & Schulz, Niels, 2002. "Changes in the United Kingdom's natural relations in terms of society's metabolism and land-use from 1850 to the present day," Ecological Economics, Elsevier, vol. 41(2), pages 203-221, May.
    2. Weisz, Helga & Krausmann, Fridolin & Amann, Christof & Eisenmenger, Nina & Erb, Karl-Heinz & Hubacek, Klaus & Fischer-Kowalski, Marina, 2006. "The physical economy of the European Union: Cross-country comparison and determinants of material consumption," Ecological Economics, Elsevier, vol. 58(4), pages 676-698, July.
    3. Martinez-Alier, Joan & Schandl, Heinz, 2002. "Special Section: European Environmental History and Ecological Economics," Ecological Economics, Elsevier, vol. 41(2), pages 175-176, May.
    4. Ayres, Robert U., 2007. "On the practical limits to substitution," Ecological Economics, Elsevier, vol. 61(1), pages 115-128, February.
    5. Ropke, Inge, 2005. "Trends in the development of ecological economics from the late 1980s to the early 2000s," Ecological Economics, Elsevier, vol. 55(2), pages 262-290, November.
    6. G. P. H. Chorley, 1981. "The Agricultural Revolution in Northern Europe, 1750–1880: Nitrogen, Legumes, and Crop Productivity," Economic History Review, Economic History Society, vol. 34(1), pages 71-93, February.
    7. Krausmann, Fridolin & Haberl, Helmut, 2002. "The process of industrialization from the perspective of energetic metabolism: Socioeconomic energy flows in Austria 1830-1995," Ecological Economics, Elsevier, vol. 41(2), pages 177-201, May.
    8. Ayres, Robert U. & van den Bergh, Jeroen C.J.M., 2005. "A theory of economic growth with material/energy resources and dematerialization: Interaction of three growth mechanisms," Ecological Economics, Elsevier, vol. 55(1), pages 96-118, October.
    9. Muradian, Roldan & O'Connor, Martin & Martinez-Alier, Joan, 2002. "Embodied pollution in trade: estimating the 'environmental load displacement' of industrialised countries," Ecological Economics, Elsevier, vol. 41(1), pages 51-67, April.
    10. Ricardo, David, 1821. "On the Principles of Political Economy and Taxation," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, edition 3, number ricardo1821, December.
    11. Malthus, Thomas Robert, 1798. "An Essay on the Principle of Population," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number malthus1798, December.
    12. Cusso, Xavier & Garrabou, Ramon & Tello, Enric, 2006. "Social metabolism in an agrarian region of Catalonia (Spain) in 1860-1870: Flows, energy balance and land use," Ecological Economics, Elsevier, vol. 58(1), pages 49-65, June.
    13. Hornborg, Alf, 2006. "Footprints in the cotton fields: The Industrial Revolution as time-space appropriation and environmental load displacement," Ecological Economics, Elsevier, vol. 59(1), pages 74-81, August.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Payments for Ecosystem Services (PES); market based instrument; cap and trade; salinity credit; revegetation; experimental economics;

    JEL classification:

    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

    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:cse:wpaper:2007-06. 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: (CSE-Webrequest). General contact details of provider: http://edirc.repec.org/data/secsiau.html .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.