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Buying Paper and Giving Gold: The Murray Darling Basin Plan

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  • Adamson, David

Abstract

Two types of water property rights exist in the Murray Darling Basin: ground water and surface water. The latter has three distinct forms, high security, general security and supplementary. Their value is dependent on location and ability to supply water under known climate signals. This article suggests an optimal mix of property rights to allow the Basin Plan to achieve its objectives in obtaining 3,200 gigalitres of surface water. However, the solution exposes the Basin Plan’s hidden gift of gold to irrigators, an extra 929 gigalitres of ground water extractions. The value of this gift increases under a changing climate.

Suggested Citation

  • Adamson, David, 2013. "Buying Paper and Giving Gold: The Murray Darling Basin Plan," Risk and Sustainable Management Group Working Papers 156481, University of Queensland, School of Economics.
    • Handle: RePEc:ags:uqsers:156481
    DOI: 10.22004/ag.econ.156481
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    References listed on IDEAS

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    Cited by:

    1. Loch, Adam & Adamson, David & Mallawaarachchi, Thilak, 2013. "Hydrology and Economics in Water Management Policy under Increasing uncertainty," Risk and Sustainable Management Group Working Papers 156479, University of Queensland, School of Economics.
    2. Adamson, David & Loch, Adam, 2013. "Natural capital and climate change: Possible negative sustainability impacts from 'gold plating' irrigation infrastructure," Risk and Sustainable Management Group Working Papers 156480, University of Queensland, School of Economics.

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