IDEAS home Printed from https://ideas.repec.org/p/een/eenhrr/0935.html
   My bibliography  Save this paper

Costing Water Quality Improvements with auction mechanisms: case studies for the Great Barrier Reef in Australia

Author

Listed:
  • John Rolfe

    () (Faculty of Business and Informatics, Central Queensland University.)

  • Jill Windle

    () (Centre for Environmental Management at Central Queensland University)

Abstract

Australian governments continue to commit significant resources to the protection of the Great Barrier Reef, with funding for Reef Rescue aimed at reducing the impacts of agricultural production on water quality. A key challenge for policy makers is to identify where funding can be efficiently allocated, as information about both the costs and benefits of different proposals is limited. While there is adequate information about the costs of different inputs for reducing water quality, there is much more limited information about the costs of achieving different outputs.The use of water quality tenders to reveal the opportunity costs of changing agricultural practices can help policy makers to understand the potential costs of misallocating public resources and to design better ways of achieving water quality improvements. This role of water quality tenders to reveal opportunity costs is demonstrated by reporting four pilot applications to improve water quality into the Great Barrier Reef in Australia. The results demonstrate the potential for opportunity costs to vary substantially between agricultural producers, and across industries, catchments and pollutants.

Suggested Citation

  • John Rolfe & Jill Windle, 2009. "Costing Water Quality Improvements with auction mechanisms: case studies for the Great Barrier Reef in Australia," Environmental Economics Research Hub Research Reports 0935, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
  • Handle: RePEc:een:eenhrr:0935
    as

    Download full text from publisher

    File URL: https://crawford.anu.edu.au/research_units/eerh/pdf/EERH_RR35.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Uwe Latacz-Lohmann & Carel Van der Hamsvoort, 1997. "Auctioning Conservation Contracts: A Theoretical Analysis and an Application," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 407-418.
    2. Uwe Latacz‚ÄźLohmann & Carel P. C. M. Van der Hamsvoort, 1998. "Auctions as a Means of Creating a Market for Public Goods from Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(3), pages 334-345, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    auctions; conservation tenders; market based instruments; water quality;

    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:een:eenhrr:0935. 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: (CAP Web Team). General contact details of provider: http://edirc.repec.org/data/asanuau.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.

    If CitEc recognized a reference but did not link an item in RePEc 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 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.