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Evaluation of environmental policies targeting irrigated agriculture: The case of the Mooki catchment, Australia

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  • Lee, Lisa Y.
  • Ancev, Tihomir
  • Vervoort, Willem

Abstract

An integrated biophysical and economic model is used to determine the effects of using more water efficient irrigation systems and trade in water rights on the environmental performance of irrigation enterprises in the Mooki catchment within the Murray–Darling Basin, Australia. We find that improved water use efficiency increased profit in the presence of modern irrigation technologies and water trading. Salinity risk downstream is reduced due to the fall in saline discharge from the catchment, and irrigation water is traded away from ecologically significant regions. It is important that the institutional setup gives confidence in the security of water supplies. When irrigators can be assured about the security of their water entitlements in the context of water reform policies, incentives emerge for them to invest in water efficient irrigation technologies and to participate in the water market. Environmental performance can thereby be improved without the need for financial support from the government. Further, minimal government intervention is required to address salinity; given the conjunctive nature of secondary salinity and water use it can be cost-efficient to address both environmental flow and salinity mitigation with a single policy instrument.

Suggested Citation

  • Lee, Lisa Y. & Ancev, Tihomir & Vervoort, Willem, 2012. "Evaluation of environmental policies targeting irrigated agriculture: The case of the Mooki catchment, Australia," Agricultural Water Management, Elsevier, vol. 109(C), pages 107-116.
    • Handle: RePEc:eee:agiwat:v:109:y:2012:i:c:p:107-116
    DOI: 10.1016/j.agwat.2012.02.011
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    Cited by:

    1. Ancev, Tiho, 2015. "The role of the commonwealth environmental water holder in annual water allocation markets," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(01), January.
    2. repec:ags:aaea22:335895 is not listed on IDEAS
    3. Juliane Haensch & Sarah Ann Wheeler & Alec Zuo & Henning Bjornlund, 2016. "The Impact of Water and Soil Salinity on Water Market Trading in the Southern Murray–Darling Basin," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(01), pages 1-26, March.
    4. Souto, Augusto & Carriquiry, Miguel A. & Rosas, Juan Francisco, 2021. "Assessing the Impact of Agricultural Intensification on Water Pollution: An Integrated Model Assessment of the San Salvador Basin in Uruguay," 2021 Annual Meeting, August 1-3, Austin, Texas 314037, Agricultural and Applied Economics Association.
    5. Aein, Reza & Alizadeh, Hosein, 2021. "Integrated hydro-economic modeling for optimal design of development scheme of salinity affected irrigated agriculture in Helleh River Basin," Agricultural Water Management, Elsevier, vol. 243(C).
    6. Wichelns, Dennis & Qadir, Manzoor, 2015. "Achieving sustainable irrigation requires effective management of salts, soil salinity, and shallow groundwater," Agricultural Water Management, Elsevier, vol. 157(C), pages 31-38.
    7. Trail, Shanelle M. & Ward, Frank A., 2024. "Uniting agricultural water management, economics, and policy for climate adaptation through a new assessment of water markets for arid regions," Agricultural Water Management, Elsevier, vol. 305(C).
    8. M. A. Samad Azad & Tihomir Ancev, 2016. "Economics of Salinity Effects from Irrigated Cotton: An Efficiency Analysis," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(01), pages 1-24, March.

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