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The Allocation and Pricing of Water in a River Basin

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  • J. W. B. Guise
  • J. C. Flinn

Abstract

A spatio-temporal equilibrium model that incorporates intraseasonal demands for irrigation water is developed for the situation with a (constrained) competitive market for water. An application of the quadratic programming model, which utilizes demand and supply estimates relating to an intensive irrigation area in southeastern Australia, is used to derive optimal short-run allocation and pricing patterns for the resource. Extensions of the model to cover multiple dam river basins and additional water uses seem conceptually straightforward, but the limitations imposed by its deterministic partial equilibrium character should be recognized.

Suggested Citation

  • J. W. B. Guise & J. C. Flinn, 1970. "The Allocation and Pricing of Water in a River Basin," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 52(3), pages 411-421.
    • Handle: RePEc:oup:ajagec:v:52:y:1970:i:3:p:411-421.
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    File URL: http://hdl.handle.net/10.2307/1237393
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    Cited by:

    1. Glyn Wittwer & Peter Dixon, 2011. "Water trading, buybacks and drought in the Murray-Darling basin: lessons from economic modelling," Centre of Policy Studies/IMPACT Centre Working Papers g-222, Victoria University, Centre of Policy Studies/IMPACT Centre.
    2. Britz, Wolfgang & Kuhn, Arnim, 2011. "Can Hydro-economic River Basis Models Simulate Water Shadow Prices Under Asymmetric Access?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114272, European Association of Agricultural Economists.
    3. Spinks, Thomas & Dahl, Dale C., 1981. "Inputs Used in U.S. Farm Production: A Bibliography of Selected Economic Studies, 1950-80," Economics and Statistics Services (ESS) Reports 319963, United States Department of Agriculture, Economic Research Service.
    4. A. K. Dragun, 1985. "Problems and Prospects for Water Reallocation in Australia," Natural Resources Forum, Blackwell Publishing, vol. 9(4), pages 239-251, November.
    5. Flinn, John C. & Day, John C., 1972. "Water Allocation in the Tucson Region of Arizona," WAEA/ WFEA Conference Archive (1929-1995) 323743, Western Agricultural Economics Association.
    6. Alan Murray & Patricia Gober & Luc Anselin & Sergio Rey & David Sampson & Paul Padegimas & Yin Liu, 2012. "Spatial Optimization Models for Water Supply Allocation," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(8), pages 2243-2257, June.
    7. Marnie Griffith & Gary Codner & Erwin Weinmann & Sergei Schreider, 2009. "Modelling hydroclimatic uncertainty and short-run irrigator decision making: the Goulburn system ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(4), pages 565-584, October.

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