State-contingent modelling of the Murray Darling Basin: implications for the design of property rights

David Adamson, Thilak Mallawaarachchi and John Quiggin

No 137977, 2006 Conference (50th), February 8-10, 2006, Sydney, Australia from Australian Agricultural and Resource Economics Society

Abstract: Questions relating to the allocation and management of risk have played a central role in the development of the National Water Initiative, particularly as it has applied to the Murray- Darling Basin. The central issues of efficiency and equity in allocations are best understood by considering water licenses as bundles of state-contingent claims. The interaction of property rights and uncertainty regarding water flows, production and output prices is modelled using a state-contingent representation of production under uncertainty. The role of technology and investment in the determination of efficient adaptation strategies to manage risks is explored using an illustrative example.

Keywords: Resource/Energy; Economics; and; Policy (search for similar items in EconPapers)
Pages: 17
Date: 2006-02
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Citations: View citations in EconPapers (7)

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Related works:
Working Paper: State-contingent modelling of the Murray Darling Basin: implications for the design of property rights (2006)
Working Paper: State-contingent modelling of the Murray Darling Basin: implications for the design of property rights (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aare06:137977

DOI: 10.22004/ag.econ.137977

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