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Moving from Piecemeal Accounting to a Pragmatic Economic Approach to Water Pricing in Australia

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Abstract

It is often said that water is under-priced and that if the full cost of water were charged, water use would be more sustainable. Moving from a statement to actual practice requires a shift in thinking about the fundamental economics. Australia has embarked on a process of economic reform and part of the reform package in the water sector has required States within Australia to report on progress towards full cost pricing, including the set of costs and in some circumstances, benefits, through changes to the environment.

Suggested Citation

  • Darla Hatton MacDonald & Sebastien Lamontagne, 2004. "Moving from Piecemeal Accounting to a Pragmatic Economic Approach to Water Pricing in Australia," Natural Resource Management Economics 04_005, Policy and Economic Research Unit, CSIRO Land and Water, Adelaide, Australia.
  • Handle: RePEc:csi:report:04_005
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    Keywords

    water; full cost; economics; externalities; Murray-Darling Basin;

    JEL classification:

    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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