IDEAS home Printed from https://ideas.repec.org/a/spr/waterr/v23y2009i10p2085-2100.html
   My bibliography  Save this article

Improving Cost Effectiveness of Irrigation Zoning for Salinity Mitigation by Introducing Offsets

Author

Listed:
  • Thomas Spencer
  • Tihomir Ancev
  • Jeff Connor

Abstract

Irrigation induced salinity is adversely affecting the agricultural industry and the environment in many countries around the world. Spatial location of irrigation enterprises has been identified as one important factor that needs to be taken into account by policies aimed at mitigating salinity. In particular, policies aimed at restricting the location of irrigation enterprises have been recently proposed to address the irrigation induced salinity problem. This article compares and contrasts the costs of two versions of such a policy: a standalone irrigation zoning policy, where new irrigation enterprises are only allowed to locate in low salinity impact zones; and a salinity offsetting policy, where new irrigation enterprises can locate in high salinity impact zones, provided that they offset their salinity impact elsewhere. A key finding is that the offsetting policy is both less costly and more effective in reducing salinity than a standalone irrigation zoning policy. This is due to the presence of incentives for choosing “optimal” location of irrigation enterprises when the costs of salinity offsets are taken into account. Copyright Springer Science+Business Media B.V. 2009

Suggested Citation

  • Thomas Spencer & Tihomir Ancev & Jeff Connor, 2009. "Improving Cost Effectiveness of Irrigation Zoning for Salinity Mitigation by Introducing Offsets," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 23(10), pages 2085-2100, August.
    • Handle: RePEc:spr:waterr:v:23:y:2009:i:10:p:2085-2100
    DOI: 10.1007/s11269-008-9371-4
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s11269-008-9371-4
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11269-008-9371-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Laura McCann & K. William Easter, 1999. "Transaction Costs of Policies to Reduce Agricultural Phosphorous Pollution in the Minnesota River," Land Economics, University of Wisconsin Press, vol. 75(3), pages 402-414.
    2. James S. Shortle & Richard D. Horan, 2001. "The Economics of Nonpoint Pollution Control," Journal of Economic Surveys, Wiley Blackwell, vol. 15(3), pages 255-289, July.
    3. Heaney, Anna & Beare, Stephen & Bell, Rosalyn, 2001. "Evaluating improvements in irrigation efficiency as a salinity mitigation option in the South Australian Riverland," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(3), pages 1-17.
    4. Stavins, Robert N., 2003. "Experience with market-based environmental policy instruments," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 9, pages 355-435, Elsevier.
    5. Adamson, David & Mallawaarachchi, Thilak & Quiggin, John C., 2007. "Water use and salinity in the Murray–Darling Basin: A state-contingent model," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(3), pages 1-19.
    6. Duke, Charlotte & Gangadharan, Lata, 2005. "Regulation in Environmental Markets: What can we learn from Experiments to Reduce Salinity?," 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia 137857, Australian Agricultural and Resource Economics Society.
    7. I. Heinz & M. Pulido-Velazquez & J. Lund & J. Andreu, 2007. "Hydro-economic Modeling in River Basin Management: Implications and Applications for the European Water Framework Directive," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 21(7), pages 1103-1125, July.
    8. Quiggin, John C., 2001. "Environmental economics and the Murray-Darling river system," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(01), pages 1-28.
    9. Randall, Alan & Taylor, Michael A., 2000. "Incentive-Based Solutions To Agricultural Environmental Problems: Recent Developments In Theory And Practice," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 32(2), pages 1-14, August.
    10. Richard L. Gardner & Robert A. Young, 1988. "Assessing Strategies for Control of Irrigation-Induced Salinity in the Upper Colorado River Basin," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 70(1), pages 37-49.
    11. Sophie Legras & Robert Lifran, 2006. "Designing Water Markets to Manage Coupled Externalities : a Preliminary Analysis," Working Papers 06-11, LAMETA, Universtiy of Montpellier, revised Nov 2006.
    12. ,, 2000. "Problems And Solutions," Econometric Theory, Cambridge University Press, vol. 16(2), pages 287-299, April.
    13. Kobrich, C. & Rehman, T. & Khan, M., 2003. "Typification of farming systems for constructing representative farm models: two illustrations of the application of multi-variate analyses in Chile and Pakistan," Agricultural Systems, Elsevier, vol. 76(1), pages 141-157, April.
    14. Jeffery Connor & John Ward, 2004. "Trialing incentive based policy to control dryland salinity in the Bet Bet Catchment, north central Victoria," Natural Resource Management Economics 04_01, Policy and Economic Research Unit, CSIRO Land and Water, Adelaide, Australia.
    15. Dinar, Ariel & Letey, J., 1991. "Agricultural water marketing, allocative efficiency, and drainage reduction," Journal of Environmental Economics and Management, Elsevier, vol. 20(3), pages 210-223, May.
    16. repec:bla:ausecr:v:38:y:2005:i:4:p:459-469 is not listed on IDEAS
    17. Randall, Alan & Taylor, Michael A., 2000. "Incentive-Based Solutions to Agricultural Environmental Problems: Recent Developments in Theory and Practice," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 32(2), pages 221-234, August.
    18. Konukcu, F. & Gowing, J.W. & Rose, D.A., 2006. "Dry drainage: A sustainable solution to waterlogging and salinity problems in irrigation areas?," Agricultural Water Management, Elsevier, vol. 83(1-2), pages 1-12, May.
    19. Jeffery Connor, 2003. "Reducing the cost of South Australia of achieving agreed salinity targets in the River Murray," Natural Resource Management Economics 03_005, Policy and Economic Research Unit, CSIRO Land and Water, Adelaide, Australia.
    20. Legras, Sophie & Lifran, Robert, 2006. "Designing Water Markets to Manage Coupled Externalities: An Application to Irrigation-Induced Salinity in Australia," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25350, International Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Azad, Md A.S. & Ancev, Tihomir, 2010. "Using ecological indices to measure economic and environmental performance of irrigated agriculture," Ecological Economics, Elsevier, vol. 69(8), pages 1731-1739, June.
    2. 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.
    3. Julio Berbel & Julia Martin-Ortega & Pascual Mesa, 2011. "A Cost-Effectiveness Analysis of Water-Saving Measures for the Water Framework Directive: the Case of the Guadalquivir River Basin in Southern Spain," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 25(2), pages 623-640, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Spencer, Thomas & Ancev, Tihomir, 2006. "Offsetting with Salinity Credits: An Alternative to Irrigation Zoning," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25517, International Association of Agricultural Economists.
    2. Murtough, Greg & Aretino, Barbara & Matysek, Anna, 2002. "Creating Markets for Ecosystem Services," Staff Research Papers 31912, Productivity Commission.
    3. Stephenson, Kurt & Bosch, Darrell J., 2003. "Nonpoint Source And Carbon Sequestration Credit Trading: What Can The Two Learn From Each Other?," 2003 Annual meeting, July 27-30, Montreal, Canada 22229, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. Greenhalgh, Suzie, 2008. "Bundled Ecosystem Markets – Are They The Future?," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6166, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Woodward, Richard T., 2001. "The Environmentally Optimal Trading Ratio," 2001 Annual meeting, August 5-8, Chicago, IL 20491, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Ancev, Tihomir & Stoecker, Arthur L. & Storm, Daniel E. & White, Michael J., 2006. "The Economics of Efficient Phosphorus Abatement in a Watershed," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(3), pages 1-20, December.
    7. Catharina Druckenbrod & Volker Beckmann, 2018. "Production-Integrated Compensation in Environmental Offsets—A Review of a German Offset Practice," Sustainability, MDPI, vol. 10(11), pages 1-22, November.
    8. Huber, Matthew C. & Willis, David B. & Hayes, John C. & Privette, Charles V., III, 2010. "Price Endogeneity and Marginal Cost Effects on Incentive Compatible Stormwater Management Policies," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61859, Agricultural and Applied Economics Association.
    9. repec:bla:canjag:v:58:y:2010:i:s1:p:403-409 is not listed on IDEAS
    10. Gordon, Simon, 2003. "Economic Instruments For Nonpoint Source Water Pollution: Options For The Swan-Canning River System," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57873, Australian Agricultural and Resource Economics Society.
    11. Bennett, Jeffrey W., 2005. "Australasian environmental economics: contributions, conflicts and ‘cop-outs’," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(3), pages 1-19.
    12. James Shortle & Richard D. Horan, 2013. "Policy Instruments for Water Quality Protection," Annual Review of Resource Economics, Annual Reviews, vol. 5(1), pages 111-138, June.
    13. Nguyen, Nga & Shortle, James S., 2006. "Transactions Costs and Point-Nonpoint Source Water Pollution Trading," 2006 Annual meeting, July 23-26, Long Beach, CA 21096, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    14. Melstrom, Richard T. & Malone, Trey, 2023. "Voter evaluations regarding the tradeoffs between agricultural production and water quality in Lake Erie," Agricultural Water Management, Elsevier, vol. 287(C).
    15. Sheila M. Olmstead, 2010. "The Economics of Water Quality," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(1), pages 44-62, Winter.
    16. Azad, Md A.S. & Ancev, Tihomir, 2010. "Using ecological indices to measure economic and environmental performance of irrigated agriculture," Ecological Economics, Elsevier, vol. 69(8), pages 1731-1739, June.
    17. Mallawaarachchi, Thilak & Auricht, Christopher & Loch, Adam & Adamson, David & Quiggin, John, 2020. "Water allocation in Australia’s Murray–Darling Basin: Managing change under heightened uncertainty," Economic Analysis and Policy, Elsevier, vol. 66(C), pages 345-369.
    18. Sarker, Ashutosh & Ross, Helen & Shrestha, Krishna K., 2008. "A common-pool resource approach for water quality management: An Australian case study," Ecological Economics, Elsevier, vol. 68(1-2), pages 461-471, December.
    19. Xueqin Zhu & Ekko Ierland, 2012. "Economic Modelling for Water Quantity and Quality Management: A Welfare Program Approach," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 26(9), pages 2491-2511, July.
    20. Jeffrey D. Connor & Darla Hatton MacDonald & Mark Morrison & Andrea Cast, 2009. "Evaluating policy options for managing diffuse source water quality in Lake Taupo, New Zealand," Environment Systems and Decisions, Springer, vol. 29(4), pages 348-359, December.
    21. Aftab, Ashar & Hanley, Nick & Baiocchi, Giovanni, 2010. "Integrated regulation of nonpoint pollution: Combining managerial controls and economic instruments under multiple environmental targets," Ecological Economics, Elsevier, vol. 70(1), pages 24-33, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:waterr:v:23:y:2009:i:10:p:2085-2100. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.