Incorporating Temporary Trade with the Buy-Back of Water Entitlements inAustralia

Sarah Wheeler, Dustin Garrick, Adam Loch and Henning Bjornlund

Centre for Water Economics, Environment and Policy Papers from Centre for Water Economics, Environment and Policy, Crawford School of Public Policy, The Australian National University

Abstract: Alternatives to the current buy-back of water entitlements by the government in the Murray Darling Basin are assessed using multiple criteria based on the western U.S. experience, real options theory, scenario analysis and policy adoption criteria. This analysis suggests the following benefits of incorporating temporary water trade and buying entitlements gradually over a twenty-year period: incremental structural adjustment; increased flexibility and efficiency; enhanced environmental flows and increased irrigator willingness to participate. However, the inclusion of temporary trade will probably involve: i) more complex institutional arrangements; ii) different types of transaction costs as environmental managers and irrigators learn how to interact in the market; and iii) an increase in the direct costs of the scheme.

Date: 2011-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://cweep.anu.edu.au/pdf/publications/research_papers/11-01_wheeler.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:een:cweanu:1101

Access Statistics for this paper

More papers in Centre for Water Economics, Environment and Policy Papers from Centre for Water Economics, Environment and Policy, Crawford School of Public Policy, The Australian National University Contact information at EDIRC.
Bibliographic data for series maintained by CAP Web Team ().