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Mathematical optimisation of drainage and economic land use for target water and salt yields

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  • Tom Nordblom
  • Iain Hume
  • Andrew Bathgate
  • Michael Reynolds

Abstract

Land managers in upper catchments are being asked to make expensive changes in land use, such as by planting trees, to attain environmental service targets, including reduced salt loads in rivers, to meet needs of downstream towns, farms and natural habitats. End-of-valley targets for salt loads have sometimes been set without a quantitative model of cause and effect regarding impacts on water yields, economic efficiency or distribution of costs and benefits among stakeholders. This paper presents a method for calculating a 'menu' of technically feasible options for changes from current to future mean water yields and salt loads from upstream catchments having local groundwater flow systems, and the land-use changes to attain each of these options at minimum cost. It sets the economic stage for upstream landholders to negotiate with downstream parties future water-yield and salt-load targets, on the basis of what it will cost to supply these ecosystem services. Copyright Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Ltd 2006.

Suggested Citation

  • Tom Nordblom & Iain Hume & Andrew Bathgate & Michael Reynolds, 2006. "Mathematical optimisation of drainage and economic land use for target water and salt yields ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 50(3), pages 381-402, September.
    • Handle: RePEc:bla:ajarec:v:50:y:2006:i:3:p:381-402
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    File URL: http://hdl.handle.net/10.1111/j.1467-8489.2006.00356.x
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    Cited by:

    1. Doole, Graeme J., 2012. "Cost-effective policies for improving water quality by reducing nitrate emissions from diverse dairy farms: An abatement–cost perspective," Agricultural Water Management, Elsevier, vol. 104(C), pages 10-20.
    2. Nordblom, Thomas L. & Hume, I.H. & Finlayson, J.D. & Pannell, David J. & Holland, J., 2013. "Upstream-downstream benefit analysis of policy on water use by upstream tree plantations," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152173, Australian Agricultural and Resource Economics Society.
    3. Nordblom, T.L. & Christy, B.P. & Finlayson, J.D. & Roberts, A.M. & Kelly, J.A., 2010. "Least cost land-use changes for targeted catchment salt load and water yield impacts in south eastern Australia," Agricultural Water Management, Elsevier, vol. 97(6), pages 811-823, June.
    4. Doole, Graeme J. & Marsh, Dan K., 2014. "Methodological limitations in the evaluation of policies to reduce nitrate leaching from New Zealand agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(1), January.
    5. Nordblom, Thomas L. & Finlayson, John D. & Hume, Iain H., 2011. "Disposition of precipitation: Supply and Demand for Water Use by New Tree Plantations," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 101225, Australian Agricultural and Resource Economics Society.
    6. David J. Pannell & Anna M. Roberts, 2010. "Australia's National Action Plan for Salinity and Water Quality: a retrospective assessment ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 54(4), pages 437-456, October.
    7. Finlayson, John & Bathgate, Andrew & Nordblom, Tom & Theiveyanathan, Tivi & Farquharson, Bob & Crosbie, Russell & Mitchell, David & Hoque, Ziaul, 2010. "Balancing land use to manage river volume and salinity: Economic and hydrological consequences for the Little River catchment in Central West, New South Wales, Australia," Agricultural Systems, Elsevier, vol. 103(3), pages 161-170, March.
    8. Nordblom, Tom & Finlayson, John D. & Hume, Iain H. & Kelly, Jason A., 2009. "Supply and Demand for Water use by New Forest Plantations: a market to balance increasing upstream water use with downstream community, industry and environmental use?," Research Reports 280785, New South Wales Department of Primary Industries Research Economists.
    9. Nordblom, T.L. & Hume, I.H. & Finlayson, J.D. & Pannell, D.J. & Holland, J.E. & McClintock, A.J., 2015. "Distributional consequences of upstream tree plantations on downstream water users in a Public–Private Benefit Framework," Agricultural Systems, Elsevier, vol. 139(C), pages 271-281.
    10. Nordblom, Thomas L. & Finlayson, John D. & Hume, Iain H., 2012. "Upstream demand for water use by new tree plantations imposes externalities on downstream irrigated agriculture and wetlands," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(4), pages 1-20, December.

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