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Irrigator and Environmental Water Management Adaptation to Climate Change and Water Reallocation in the Murray–Darling Basin

Author

Listed:
  • Mac Kirby

    (CSIRO Land and Water, Australia)

  • Jeff Connor

    (CSIRO Land and Water, Australia)

  • Mobin-ud Din Ahmad

    (CSIRO Land and Water, Australia)

  • Lei Gao

    (CSIRO Land and Water, Australia)

  • Mohammed Mainuddin

    (CSIRO Land and Water, Australia)

Abstract

In an earlier paper (Kirbyet al.2014a), we showed that climate change and a new policy which reallocates water to the environment will impact both the flow of water and the income derived from irrigation in the Murray–Darling Basin. Here, we extend the analysis to consider irrigator and environmental water management strategies to adapt to these new circumstances. Using an integrated hydrology-economics model, we examine a range of strategies and their impact on flows and the gross income of irrigation.We show that the adaptation strategies provide a range of flow and economic outcomes in the Basin. Several strategies offer significant scope to enhance flows without large adverse impacts on the gross income of irrigation overall. Some environmental water management strategies enhance flows in the Murray part of the basin even under the drying influence of a projected median climate change. Irrigator strategies that include carryover of water in storage from one year to the next provide for lesser year to year variability in gross income and may be regarded as more advantageous in providing security against droughts. Flows and the gross income of low value irrigation industries strategies are sensitive to climate change, irrespective of adaptation strategy. Should a projected dry extreme climate change be realized, no strategy can prevent a large reduction in flows and also in gross income, particularly of low value irrigation industries. Nevertheless, environmental water management strategies mitigate the impact on flows, and in some cases may also help mitigate the impacts on gross income. High value irrigation industries are less affected (in terms of gross income, though net income will reduce because of rising water prices) by projected climate change, consistent with observation in the recent long term drought.

Suggested Citation

  • Mac Kirby & Jeff Connor & Mobin-ud Din Ahmad & Lei Gao & Mohammed Mainuddin, 2015. "Irrigator and Environmental Water Management Adaptation to Climate Change and Water Reallocation in the Murray–Darling Basin," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 1(03), pages 1-31.
    • Handle: RePEc:wsi:wepxxx:v:01:y:2015:i:03:n:s2382624x15500095
    DOI: 10.1142/S2382624X15500095
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    References listed on IDEAS

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    1. Heaney, Anna & Beare, Stephen & Brennan, Donna C., 2012. "Managing environmental flow objectives under uncertainty: The case of the lower Goulburn River floodplain, Victoria," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124315, Australian Agricultural and Resource Economics Society.
    2. Kirby, Mac & Mainuddin, Mohammed & Gao, Lei & Connor, Jeffery D. & Ahmad, Mobin-ud-Din, 2012. "Integrated, dynamic economic – hydrology model of the Murray-Darling Basin," 2012 Conference (56th), February 7-10, 2012, Fremantle, Australia 124487, Australian Agricultural and Resource Economics Society.
    3. Sarah Wheeler & Dustin Garrick & Adam Loch & Henning Bjornlund, 2011. "Incorporating Temporary Trade with the Buy-Back of Water Entitlements inAustralia," Centre for Water Economics, Environment and Policy Papers 1101, Centre for Water Economics, Environment and Policy, Crawford School of Public Policy, The Australian National University.
    4. Scheierling, Susanne M., 2011. "Assessing the direct economic effects of reallocating irrigation water to alternative uses : concepts and an application," Policy Research Working Paper Series 5797, The World Bank.
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    Cited by:

    1. Seidl, Constantin & Wheeler, Sarah Ann & Zuo, Alec, 2020. "High turbidity: Water valuation and accounting in the Murray-Darling Basin," Agricultural Water Management, Elsevier, vol. 230(C).
    2. R. J. Farquharson & J. W. Freebairn & J. A. Webb & M. J. Stewardson & T. Ramilan, 2017. "An Economic Framework for Sharing Water Within a River Catchment," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 1-19, July.

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