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Economic Analysis of an Environmental Challenge: Salinity, Uncertainty and Property. The applicability of standard property-rights solutions to complex environmental issues such as salinity is examined. Water and carbon trading, as well as issues relating to agricultural land management are addressed. In particular, the use of price instruments as a potentially more attractive mechanism than standard quantity instruments for achieving desirable outcomes is examined. The project will exploit and ....Economic Analysis of an Environmental Challenge: Salinity, Uncertainty and Property. The applicability of standard property-rights solutions to complex environmental issues such as salinity is examined. Water and carbon trading, as well as issues relating to agricultural land management are addressed. In particular, the use of price instruments as a potentially more attractive mechanism than standard quantity instruments for achieving desirable outcomes is examined. The project will exploit and extend recent theoretical developments in modelling under conditions of uncertainty, and the use of price and quantity instruments in regulatory contexts.Read moreRead less
Analysis of Possible Rules for Interstate Water Trading by the Australian Capital Territory. Rules will be studied and modelled for allowing ACT water trading with other states, within an agreed abstraction cap. The aim is to find administrative, constraining and price-setting rules that maximise the economic gain of trading to Australia, bearing in mind environmental constraints, infrastructure costs, transaction costs, and equity. Innovative challenges for the rules will be allowing ACT to se ....Analysis of Possible Rules for Interstate Water Trading by the Australian Capital Territory. Rules will be studied and modelled for allowing ACT water trading with other states, within an agreed abstraction cap. The aim is to find administrative, constraining and price-setting rules that maximise the economic gain of trading to Australia, bearing in mind environmental constraints, infrastructure costs, transaction costs, and equity. Innovative challenges for the rules will be allowing ACT to sell water now but buy it back later, thus providing for long term population growth; and handling the differences between ACT's spare storage capacity and urban uses, and the downstream irrigation uses with which trade is most likely.Read moreRead less
Combining hydrological information with a multi-regional, computable general equilibrium model. The model to be created will combine a unique amount of economic detail at the statistical division level with hydrological detail. Users will obtain better estimates than previously available on the regional and industrial impacts of different water scenarios. This will produce economic and social returns to the community through improved water policies in the following areas: urban-rural water alloc ....Combining hydrological information with a multi-regional, computable general equilibrium model. The model to be created will combine a unique amount of economic detail at the statistical division level with hydrological detail. Users will obtain better estimates than previously available on the regional and industrial impacts of different water scenarios. This will produce economic and social returns to the community through improved water policies in the following areas: urban-rural water allocation; climate change impact assessment; water reform and water trading; and the economic impacts of meeting environmental objectives. The model will thus provide a path-breaking tool for examining issues arising from COAG reforms and broader policy goals. Read moreRead less
The Sustainability of Agricultural Productivity Growth in a Changing Environment: An International Perspective. The project could provide significant benefits to Australia. Australia is a dry continent with fragile natural resources, and a significant exporter of agricultural products. A sound knowledge of the factors that affect agricultural sustainability is crucial. Perhaps more importantly, identifying economic, environmental, social, institutional and political factors that influence agric ....The Sustainability of Agricultural Productivity Growth in a Changing Environment: An International Perspective. The project could provide significant benefits to Australia. Australia is a dry continent with fragile natural resources, and a significant exporter of agricultural products. A sound knowledge of the factors that affect agricultural sustainability is crucial. Perhaps more importantly, identifying economic, environmental, social, institutional and political factors that influence agricultural sustainability in other countries, especially our Asian neighbours, will provide valuable information to relevant agencies in designing strategies aimed at ensuring that these countries are stable and well fed. This is of particular importance in the current climate, with growing influences of terrorist organisations in places where poverty exists.Read moreRead less
Climate change: adaptation and resilience in the face of uncertainty. Climate change poses a wide range of challenges to Australia's agricultural sector and for the management of natural ecosystems. These challenges are recognised in the National Research Priorities 1, An Environmentally Sustainable Australia, and 4, Safeguarding Australia. The potential economic costs of climate change to vital national assets such as the Murray-Darling Basin and the Great Barrier Reef, amount to billions of do ....Climate change: adaptation and resilience in the face of uncertainty. Climate change poses a wide range of challenges to Australia's agricultural sector and for the management of natural ecosystems. These challenges are recognised in the National Research Priorities 1, An Environmentally Sustainable Australia, and 4, Safeguarding Australia. The potential economic costs of climate change to vital national assets such as the Murray-Darling Basin and the Great Barrier Reef, amount to billions of dollars per year, and ecological costs are even more significant. Uncertainty about the rate at which climate change will take place and about effects in different regions is central to the problem. This project will explore adaptive management strategies that promote resilience in the face of uncertainty.
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Designing Better Landowner Contracts to Protect Australia's Environment. There will be two main benefits from this project. First a reduction in the cost of protecting the environment and second, a greater awareness amongst regulators of the determinants of compliance costs and their variability amongst landowners. By making environmental contracts more efficient, this project will contribute towards making Australian agriculture more sustainable in terms of protecting biodiversity, conserving ....Designing Better Landowner Contracts to Protect Australia's Environment. There will be two main benefits from this project. First a reduction in the cost of protecting the environment and second, a greater awareness amongst regulators of the determinants of compliance costs and their variability amongst landowners. By making environmental contracts more efficient, this project will contribute towards making Australian agriculture more sustainable in terms of protecting biodiversity, conserving water and reducing the rate of soil loss.Read moreRead less
Water derivatives: conceptualisation, price modelling and economic impacts. Introducing water options is likely to provide farmers with more choices on trading their water allocation and enhance water price certainty. Recent seasons have accentuated the potential benefit of water options: regions with highly secure water in the past have suffered repeated shortfalls in allocations. Water options would alter the behaviour of water managers who would need to ensure sufficient carryover to future s ....Water derivatives: conceptualisation, price modelling and economic impacts. Introducing water options is likely to provide farmers with more choices on trading their water allocation and enhance water price certainty. Recent seasons have accentuated the potential benefit of water options: regions with highly secure water in the past have suffered repeated shortfalls in allocations. Water options would alter the behaviour of water managers who would need to ensure sufficient carryover to future seasons to allow for drought. Options markets may improve the allocation of water between competing users. Such markets, by reducing uncertainty, may reduce excessive adjustment costs arising from drought by improving water access security.Read moreRead less
Designing better soil quality indexes to improve land and environmental management. This project will develop sound methods for capturing diverse soil quality attributes in summary soil quality indexes to facilitate wiser land and environmental management. The project will generate benefits through: 1) improvements in the sustainability of our agricultural industries by providing better tools for matching soils with crops and for more efficient chemical input use on farms, 3) improvements in env ....Designing better soil quality indexes to improve land and environmental management. This project will develop sound methods for capturing diverse soil quality attributes in summary soil quality indexes to facilitate wiser land and environmental management. The project will generate benefits through: 1) improvements in the sustainability of our agricultural industries by providing better tools for matching soils with crops and for more efficient chemical input use on farms, 3) improvements in environmental water quality through reductions in nonpoint source pollution from agriculture, 3) tools for monitoring the recovery of degraded agricultural or mining soil resources, and 4) better conservation contract design.Read moreRead less
Solving the water crisis in Australian cities and towns with options contracts between urban and rural water users. We will equip water resource managers with a powerful and effective tool for the allocation of water resources between rural and urban sectors. The importance of this bridge cannot be understated. To date urban centres have endured stringent water restrictions to manage dwindling urban suppliers, while ignoring the potential benefits of purchasing water from the irrigated agricul ....Solving the water crisis in Australian cities and towns with options contracts between urban and rural water users. We will equip water resource managers with a powerful and effective tool for the allocation of water resources between rural and urban sectors. The importance of this bridge cannot be understated. To date urban centres have endured stringent water restrictions to manage dwindling urban suppliers, while ignoring the potential benefits of purchasing water from the irrigated agriculture sector. Furthermore, rural communities have suffered hardship due to restricted agricultural production during times of drought. This research proposal represents an exciting solution to both problems and offers the tantalising prospect of water shortages in our capital cities and towns becoming distant memories.Read moreRead less
Sustainable reform of the Murray-Darling system: Property rights, uncertainty and institutions. The project will develop tools for the modelling of uncertainty in the absence of probabilities and with imperfect knowledge about possible events. It will also formalise and assess the precautionary principle for the sustainable management of complex systems. Finally, the project will apply these tools to analyse and improve policies for the reform of property rights, institutions and land and water ....Sustainable reform of the Murray-Darling system: Property rights, uncertainty and institutions. The project will develop tools for the modelling of uncertainty in the absence of probabilities and with imperfect knowledge about possible events. It will also formalise and assess the precautionary principle for the sustainable management of complex systems. Finally, the project will apply these tools to analyse and improve policies for the reform of property rights, institutions and land and water management in the Murray?Darling system. The project will assist in the formulation of sustainable responses to problems of drought and irrigation related salinity in the Murray?Darling system.Read moreRead less