A review of CGE modelling of irrigation developments and policies in Australia

Glyn Wittwer

No 333263, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: Australia is the driest inhabited continent on earth. Its most important irrigation development is in the Murray-Darling Basin, which is relatively adjacent to the majority of Australia’s population. CGE modelling using TERM-H2O has demonstrated that attempts to restore the balance between water for economic purposes and water for the environment in the basin will have little impact on regional economies. However, substantial public spending has been on inefficient water infrastructure upgrades to appease concerns about regional economic damage. Modelling of the Flinders-Gilbert irrigation scheme proposed in far northern Queensland indicates that it is unlikely to yield net economic benefits. Although in theory there is abundant water that irrigators could use, extreme isolation is among the reasons that the scheme is unlikely to be viable. The Ord River scheme, completed in tropical Western Australia in the early 1970s, has created few jobs relative to construction costs. Research is currently under way on variants of the “Bradfield” scheme. Projects under this scheme aim to use water in remote Queensland for economic purposes.

Keywords: Crop Production/Industries; Agricultural and Food Policy (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:333263

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