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

David Adamson, Thilak Mallawaarachchi and John Quiggin

No 149856, Risk and Sustainable Management Group Working Papers from University of Queensland, School of Economics

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: Environmental Economics and Policy; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 24
Date: 2006
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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:uqsers:149856

DOI: 10.22004/ag.econ.149856

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