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Historical regulation of Victoria's water sector: A case of government failure?

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  • Harris, E.

Abstract

This paper analyses the role of government failure in Victoria’s water sector between 1905 and 1984 as evidenced in the rise of in-stream salinity. It will be shown that high levels of salinity can, in part, be attributed to regulatory failure for two reasons. First, the method of water allocation, a compulsory minimum charge with the marginal cost of water being zero, encouraged over watering, resulting in increased water tables via groundwater recharge. Second, the government did not provide adequate finance for construction of appropriate removal of saline drainage water, and thereby allowed increasing in-stream salinity.

Suggested Citation

  • Harris, E., 2007. "Historical regulation of Victoria's water sector: A case of government failure?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(3), pages 1-10.
    • Handle: RePEc:ags:aareaj:118336
    DOI: 10.22004/ag.econ.118336
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    File URL: https://ageconsearch.umn.edu/record/118336/files/j.1467-8489.2007.00384.x.pdf
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    2. Pannell, David J. & McFarlane, Donald J. & Ferdowsian, Ruhi, 2001. "Rethinking the externality issue for dryland salinity in Western Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(3), pages 1-17.
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    4. Pannell, David J., 2001. "Dryland salinity: economic, scientific, social and policy dimensions," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(4), pages 1-30.
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    6. George J. Stigler, 1974. "Free Riders and Collective Action: An Appendix to Theories of Economic Regulation," Bell Journal of Economics, The RAND Corporation, vol. 5(2), pages 359-365, Autumn.
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    Cited by:

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    2. Jason Hackworth, 2009. "Normalizing ‘Solutions’ to ‘Government Failure’: Media Representations of Habitat for Humanity," Environment and Planning A, , vol. 41(11), pages 2686-2705, November.

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