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Designing Water Markets to Manage Coupled Externalities: An Application to Irrigation-Induced Salinity in Australia

Sophie Legras () and Robert Lifran

No 25350, 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia from International Association of Agricultural Economists

Abstract: In this paper, the design of water markets for the management of irrigation-induced salinity in Australia is addressed. Indeed, this setting exhibits complex interactions between the different features of the resource water. Quality, quantity of surface and ground-water interact in ways that produce coupled environmental externalities. It is then difficult to design efficient policy instruments to tackle all the issues at stake. This paper provides a preliminary analysis of three types of water market mechanisms, involving diversion rights and recharge rights.

Keywords: Resource; /Energy; Economics; and; Policy (search for similar items in EconPapers)
Pages: 16
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae06:25350

DOI: 10.22004/ag.econ.25350

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