Modelling the Cost of Irrigator Response to Lower River Murray Salinity

Adam Chambers, Jeff Connor and Darran King

No 174468, 2006 Conference (50th), February 8-10, 2006, Sydney, Australia from Australian Agricultural and Resource Economics Society

Abstract: This paper reports on an analysis of irrigator water demand and profit changes across varying annual water availability, crop water requirements, and river salinity conditions for irrigation along the South Australian portion of the Lower Murray. The paper also investigates the validity of the current relationship between salinity of irrigation water and irrigated crop yield underlying MDBC salinity offset investments. The assumption implicit in the current MDBC net benefits formula may be mis-specified in that the possibility to avoid yield loss with additional leaching is not accounted for. This paper reports how that mis-specification, that irrigators would simply accept yield losses, leads to overstatement of the benefits of actions to decrease salinity.

Keywords: Demand and Price Analysis; Land Economics/Use; Resource/Energy Economics and Policy (search for similar items in EconPapers)
Pages: 23
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aare06:174468

DOI: 10.22004/ag.econ.174468

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