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Encouraging Environmentally Sustainable Growth in Australia

Author

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  • Ann Vourc'h
  • Robert Price

Abstract

This document analyses aspects of natural resource and environmental policies in Australia, focusing on water resource management, salinity and climate change mitigation. The state and central governments have not made use of their taxation powers in these domains. The cap-and-trade system for water rights in the Murray Darling basin aims at better integration of economic and environmental reform. Still higher benefits could be reaped from trading if the various restrictions on trade were lifted, and if water pricing reform were accelerated in rural areas, so as to reflect economic and environmental costs. The rules for allocating flows for the environment also need to be clarified. To address dryland salinity, more co-ordination between the States and the Commonwealth is needed, for example to avoid the contradiction inherent in subsidising revegetation programmes while at the same time authorising further land clearing. Economic instruments could be used for intermediate ... Ce document analyse certains aspects de la politique des ressources naturelles et de l’environnement en Australie, en se concentrant sur la gestion de la ressource en eau, le problème de la salinité et la politique de lutte contre le changement climatique. Les gouvernements des états et du Commonwealth n’ont pas fait usage de leurs pouvoirs fiscaux dans ces domaines. Le système de plafonnement et d’échange des droits d’usage de l’eau tente de mieux intégrer la réforme économique et environnementale. Des bénéfices accrus seraient toutefois tirés de cette réforme si les restrictions pesant sur les échanges étaient levées, et si la réforme de la tarification de l’eau était accélérée dans les zones rurales – afin que les prix reflètent mieux les coûts économiques et environnementaux. Les règles d’allocation de débits pour l’environnement devraient être clarifiées. Dans la lutte contre la salinité des terres arides, une meilleure coordination entre le Commonwealth et les états est ...

Suggested Citation

  • Ann Vourc'h & Robert Price, 2001. "Encouraging Environmentally Sustainable Growth in Australia," OECD Economics Department Working Papers 309, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:309-en
    DOI: 10.1787/404833521114
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    References listed on IDEAS

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    1. Mike Young, 2000. "Market-based Opportunities to Improve Environmental Flows: A scoping paper," Natural Resource Management Economics 00_004, Policy and Economic Research Unit, CSIRO Land and Water, Adelaide, Australia.
    2. Paul O'Brien & David Carey & Jens Høj & Andreas Woergoetter, 2001. "Encouraging Environmentally Sustainable Growth in Belgium," OECD Economics Department Working Papers 300, OECD Publishing.
    3. Crase, Lin & O'Reilly, Leo & Dollery, Brian, 2000. "Water markets as a vehicle for water reform: the case of New South Wales," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(2), pages 1-23.
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    Keywords

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    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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