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Responsiveness of Demand for Irrigation Water: A Focus on the Southern Murray-Darling Basin

Author

Listed:
  • D. Appels

    (Productivity Commission)

  • R. Douglas

    (Productivity Commission)

  • G. Dwyer

    (Productivity Commission)

Abstract

This working paper was released in August 2004. This research is part of a suite of research related to water reform, including the effects of expanding water trade and the management of environmental externalities associated with the supply and use of irrigation water. A foundation for this research is a detailed understanding of irrigated agriculture in the southern Murray-Darling Basin, including: the existing patterns of water use; the emerging trade in water property rights and the likely behavioural responses of individual irrigators to changing water prices. This paper explores the determinants of the elasticity of demand for irrigation water. It focuses on three main irrigated industries — rice, dairy and horticulture — to gain a greater understanding of the value that farmers place on water as an input. The paper provides detail relating to farm decision behaviour and biophysical production realities faced by irrigators in the southern Murray-Darling Basin.

Suggested Citation

  • D. Appels & R. Douglas & G. Dwyer, 2005. "Responsiveness of Demand for Irrigation Water: A Focus on the Southern Murray-Darling Basin," Others 0506006, EconWPA.
  • Handle: RePEc:wpa:wuwpot:0506006 Note: Type of Document - pdf; pages: 92
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    File URL: http://econwpa.repec.org/eps/othr/papers/0506/0506006.pdf
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    References listed on IDEAS

    as
    1. M. D. Young & J. C. McColl, 2003. "Robust Reform: The Case for a New Water Entitlement System for Australia," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 36(2), pages 225-234.
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    Citations

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    Cited by:

    1. M. Ejaz Qureshi & Jeff Connor & Mac Kirby & Mohammed Mainuddin, 2007. "Economic assessment of acquiring water for environmental flows in the Murray Basin ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(3), pages 283-303, September.
    2. Qureshi, M. Ejaz & Shi, Tian & Qureshi, Sumaira E. & Proctor, Wendy, 2009. "Removing barriers to facilitate efficient water markets in the Murray-Darling Basin of Australia," Agricultural Water Management, Elsevier, vol. 96(11), pages 1641-1651, November.
    3. Wheeler, Sarah Ann & Bjornlund, Henning & Shanahan, Martin & Zuo, Alec, 2008. "Price elasticity of water allocations demand in the Goulburn–Murray Irrigation District," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 52(1), March.
    4. Gavan Dwyer & Robert Douglas & Deb Peterson & Jo Chong & Kate Maddern, 2006. "Irrigation externalities: pricing and charges," Staff Working Papers 0603, Productivity Commission, Government of Australia.
    5. Minjun Shi & Xiaojun Wang & Hong Yang & Tao Wang, 2014. "Pricing or Quota? A Solution to Water Scarcity in Oasis Regions in China: A Case Study in the Heihe River Basin," Sustainability, MDPI, Open Access Journal, vol. 6(11), pages 1-20, October.
    6. SaÄŸlam, YiÄŸit, 2011. "Optimal Pricing of Water: Optimal Departures from the Inverse Elasticity Rule," Working Paper Series 1533, Victoria University of Wellington, School of Economics and Finance.
    7. M. Ejaz Qureshi & Wendy Proctor & M. Kirby, "undated". "Economic Assessment of Water Trade Restrictions in the Murray Darling Basin," Regional and Urban Modeling 283600079, EcoMod.
    8. Hellegers, Petra & Davidson, Brian, 2010. "Determining the disaggregated economic value of irrigation water in the Musi sub-basin in India," Agricultural Water Management, Elsevier, vol. 97(6), pages 933-938, June.
    9. Vardon, Michael & Lenzen, Manfred & Peevor, Stuart & Creaser, Mette, 2007. "Water accounting in Australia," Ecological Economics, Elsevier, vol. 61(4), pages 650-659, March.
    10. Wheeler, Sarah & Bjornlund, Henning & Zuo, Alec & Shanahan, Martin, 2010. "The changing profile of water traders in the Goulburn-Murray Irrigation District, Australia," Agricultural Water Management, Elsevier, vol. 97(9), pages 1333-1343, September.
    11. Brennan, Donna C., 2006. "Water policy reform in Australia: lessons from the Victorian seasonal water market," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(3), September.
    12. Daniel Connell, 2010. "Sustainability and the National Water Initiative," Centre for Water Economics, Environment and Policy Papers 1006, Centre for Water Economics, Environment and Policy, Crawford School of Public Policy, The Australian National University.
    13. Marnie Griffith & Gary Codner & Erwin Weinmann & Sergei Schreider, 2009. "Modelling hydroclimatic uncertainty and short-run irrigator decision making: the Goulburn system ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), pages 565-584, October.
    14. Connor, Jeffery D. & Ward, John & Clifton, Craig & Proctor, Wendy & Hatton MacDonald, Darla, 2008. "Designing, testing and implementing a trial dryland salinity credit trade scheme," Ecological Economics, Elsevier, vol. 67(4), pages 574-588, November.
    15. Shi, Tian, 2006. "Simplifying complexity: Rationalising water entitlements in the Southern Connected River Murray System, Australia," Agricultural Water Management, Elsevier, vol. 86(3), pages 229-239, December.

    More about this item

    Keywords

    southern murray-darling basin; irrigation; irrigation water; water; rice; dairy; horticulture; biophysical production; water reform; water trade;

    JEL classification:

    • R - Urban, Rural, Regional, Real Estate, and Transportation Economics

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