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Water use and salinity in the MurrayÐDarling Basin: a state-contingent model

  • David Adamson

    ()

    (Risk and Sustainable Management Group, University of Queensland)

  • Thilak Mallawaarachchi

    ()

    (Risk and Sustainable Management Group, University of Queensland)

  • John Quiggin

    ()

    (Risk & Sustainable Management Group, School of Economics, University of Queensland)

The MurrayÐDarling Basin comprises over 1 million square kilometres; it lies within four states and one territory; and over 12,800 gigalitres of irrigation water is used to produce over 40 per cent of the nation's gross value of agricultural production. The supply of water for irrigation is subject to climatic and policy uncertainty. The object of the present paper is to show how the linear and nonlinear programming models commonly used in modelling problems such as those arising in the MurrayÐDarling Basin may be adapted to incorporate a state-contingent representation of uncertainty.

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Paper provided by Risk and Sustainable Management Group, University of Queensland in its series Murray-Darling Program Working Papers with number WP5M06.

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Date of creation: Jun 2006
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Handle: RePEc:rsm:murray:m06_5
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  1. Svend Rasmussen, 2003. "Criteria for optimal production under uncertainty. The state-contingent approach," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(4), pages 447-476, December.
  2. John Quiggin & Robert G. Chambers, 2006. "The state-contingent approach to production under uncertainty ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(2), pages 153-169, 06.
  3. David Adamson & Thilak Mallawaarachchi & John Quiggin, 2006. "State-contingent modelling of the Murray Darling Basin: implications for the design of property rights," Murray-Darling Program Working Papers WP2M06, Risk and Sustainable Management Group, University of Queensland.
  4. Robert G. Chambers & John Quiggin, 2004. "Technological and financial approaches to risk management in agriculture: an integrated approach ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 199-223, 06.
  5. Hall, Nigel H. & Mallawaarachchi, Thilak & Batterham, Robert L., 1991. "The Market for Irrigation Water: A Modelling Approach," 1991 Conference (35th), February 11-14, 1991, Armidale, Australia 145889, Australian Agricultural and Resource Economics Society.
  6. D. Peterson & G. Dwyer & D. Appels & J. Fry, 2005. "Modelling Water Trade in the Southern Murray-Darling Basin," Urban/Regional 0506007, EconWPA.
  7. Chris O'Donnell & W.E. Griffiths, 2004. "Estimating State-Contingent Production Frontiers," CEPA Working Papers Series WP022004, School of Economics, University of Queensland, Australia.
  8. Kingwell, Ross S. & Pannell, David J. & Robinson, Stephen D., 1993. "Tactical responses to seasonal conditions in whole-farm planning in Western Australia," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 8(3), March.
  9. repec:cup:cbooks:9780521622448 is not listed on IDEAS
  10. Quiggin, John C., 1991. "Salinity Mitigation in the Murray River System," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 59(01), April.
  11. John Freebairn & John Quiggin, 2006. "Water rights for variable supplies ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(3), pages 295-312, 09.
  12. Colin G. Brown & Ross G. Drynan, 1986. "Plant Location Analysis Using Discrete Stochastic Programming1," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 30(1), pages 1-22, 04.
  13. O'Donnell, Chris & Chambers, Robert G & Quiggin, John, 2006. "Efficiency analysis in the presence of uncertainty," Risk and Sustainable Management Group Working Papers 151176, University of Queensland, School of Economics.
  14. John Quiggin & Robert G. Chambers, 2004. "Drought policy: a graphical analysis," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), pages 225-251, 06.
  15. K. D. Cocks, 1968. "Discrete Stochastic Programming," Management Science, INFORMS, vol. 15(1), pages 72-79, September.
  16. Chambers, Christopher P. & Miller, Alan D., . "Inefficiency," Working Papers WP2011/14, University of Haifa, Department of Economics, revised 30 Nov 2011.
  17. Robert G. Chambers & John Quiggin, 2005. "Cost Minimization and Asset Pricing," Risk & Uncertainty Working Papers WP3R05, Risk and Sustainable Management Group, University of Queensland.
  18. Kingwell, R. S., 1994. "Risk attitude and dryland farm management," Agricultural Systems, Elsevier, vol. 45(2), pages 191-202.
  19. Pannell, David J. & Nordblom, Thomas L., 1998. "Impacts of risk aversion on whole-farm management in Syria," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 42(3), September.
  20. Hardaker, J. Brian & Patten, Louise H. & Pannell, David J., 1988. "Utility-Efficient Programming For Whole-Farm Planning," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 32(02-03).
  21. Brown, Colin G. & Drynan, Ross G., 1986. "Plant Location Analysis Using Discrete Stochastic Programming," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 30(01), April.
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