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Where should out water go? Assessing trade-offs in water allocation in the Namoi River Catchment

Author

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  • Letcher, Rebecca A.
  • Watson, W.D.
  • Hall, Nigel H.

Abstract

The Namoi river catchment in northern NSW is an important irrigation region. Water resources in this region are increasingly stressed. Both surface and groundwater supplies are overallocated in many areas of the catchment. Management options to reduce allocations in line with available supply and environmental requirements are expected to have long term social, economic and environmental implications. One water resource, off-allocation water, is currently unallocated. This means that no user is currently given a property right to this resource and it is available for re-allocation to alternative users, including the environment. This paper outlines an integrated economic-hydrologic modelling tool which has been developed to estimate regional scale economic and environmental trade-offs associated with alternative water allocation policies. A detailed description of the economic modelling component is provided. In particular the way in which capital investment decisions are treated in the model are described. The sensitivity of the model to assumptions about the cost of investing in additional capital is shown and results for the application of the model to a number of policy scenarios are presented.

Suggested Citation

  • Letcher, Rebecca A. & Watson, W.D. & Hall, Nigel H., 2002. "Where should out water go? Assessing trade-offs in water allocation in the Namoi River Catchment," 2002 Conference (46th), February 13-15, 2002, Canberra, Australia 125130, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare02:125130
    DOI: 10.22004/ag.econ.125130
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    References listed on IDEAS

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    1. Jones, Randall E. & Musgrave, Warren F. & Bryant, Mike, 1991. "Optimal Irrigation Water Allocation and Supply Reliability in the Murrumbidgee Valley," 1991 Conference (35th), February 11-14, 1991, Armidale, Australia 145911, Australian Agricultural and Resource Economics Society.
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    2. Letcher, Rebecca A. & Watson, W.D. & Hall, Nigel H., 2001. "An integrated model for water allocation in the Namoi River: economic module," 2001 Conference (45th), January 23-25, 2001, Adelaide, Australia 125689, Australian Agricultural and Resource Economics Society.
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    Resource /Energy Economics and Policy;

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