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Ownership structure and incentives to invest: dual-structured irrigation cooperatives in Australia

Author

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  • PLUNKETT, BRADLEY
  • CHADDAD, FABIO R.
  • COOK, MICHAEL L.

Abstract

In the past decade, Australia has begun to privatize its irrigation system. Two general models have emerged: a single and a dual ownership structure. This paper examines the trade-offs, costs and benefits, and the attendant efficiencies regarding costs of ownership. In particular, we examine member capital investment incentives and resultant risk-bearing costs related to capital formation. The paper concludes that the dual ownership structure system has significant economic advantages relative to its single-structured counterpart.

Suggested Citation

  • Plunkett, Bradley & Chaddad, Fabio R. & Cook, Michael L., 2010. "Ownership structure and incentives to invest: dual-structured irrigation cooperatives in Australia," Journal of Institutional Economics, Cambridge University Press, vol. 6(2), pages 261-280, June.
    • Handle: RePEc:cup:jinsec:v:6:y:2010:i:02:p:261-280_99
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    Cited by:

    1. Berends, Jared & Rich, Karl M. & Kaitibie, Simeon & Lyne, Michael C., 2021. "Ex-ante evaluation of interventions to upgrade pork value chains in Southern Myanmar," Agricultural Systems, Elsevier, vol. 194(C).
    2. Curtiss, Jarmila & Ratinger, Tomas & Medonos, Tomas, 2012. "Ownership and Investment Behaviour in Transition Countries: A Case Study of Collective and Corporate Farms in the Czech Republic," Working papers 122841, Factor Markets, Centre for European Policy Studies.
    3. Borgen, Svein Ole & Aarset, Bernt, 2016. "Participatory Innovation: Lessons from breeding cooperatives," Agricultural Systems, Elsevier, vol. 145(C), pages 99-105.
    4. Jos Bijman & Markus Hanisch & Ger Sangen, 2014. "Shifting Control? The Change of Internal Governance in Agricultural Cooperatives in the EU," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(4), pages 641-661, December.

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