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Urban water supply in Australia: the option of diverting water from irrigation

Author

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  • John Quiggin

    (Risk & Sustainable Management Group, School of Economics, University of Queensland)

Abstract

Most urban areas in Australia are facing the prospect of increasing scarcity of water. Further pressure arises from evidence that existing levels of water use in many catchments are environmentally unsustainable. One option, feasible for some but not all Australian cities is the diversion to urban areas of water currently used for irrigated agriculture. Such diversions are currently constrained by a range of government policies. However, plans for the creation of a national water market raise the possibility that water rights may be purchased from irrigators and used to increase the supply of water for residential use. A number of policy concerns, notably relating to stranded assets and environmental externalities must be addressed in the consideration of such purchases.

Suggested Citation

  • John Quiggin, 2006. "Urban water supply in Australia: the option of diverting water from irrigation," Murray-Darling Program Working Papers WP3M06, Risk and Sustainable Management Group, University of Queensland.
    • Handle: RePEc:rsm:murray:m06_3
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    File URL: http://www.uq.edu.au/rsmg/WP/WPM06_3.pdf
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    Cited by:

    1. R. Quentin Grafton & Tom Kompas, 2007. "Pricing Sydney water ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(3), pages 227-241, September.
    2. Anthony Ryan & Clive L. Spash & Thomas G Measham, 2021. "Motives Behind Domestic Greywater and Rainwater Collection: Evidence from Australia," SRE-Disc sre-disc-2021_05, Institute for Multilevel Governance and Development, Department of Socioeconomics, Vienna University of Economics and Business.
    3. Adamson, David & Loch, Adam, 2018. "Achieving environmental flows where buyback is constrained," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(1), January.
    4. repec:bla:ausecr:v:41:y:2008:i:4:p:401-412 is not listed on IDEAS
    5. R. Quentin Grafton & Tom Kompas, 2006. "Sydney Water : Pricing for Sustainability," Microeconomics Working Papers 21835, East Asian Bureau of Economic Research.
    6. Anthony Ryan & Clive L Spash & Thomas G Measham, 2009. "Household Water Collection in Canberra," Socio-Economics and the Environment in Discussion (SEED) Working Paper Series 2009-06, CSIRO Sustainable Ecosystems.
    7. Neal Hughes & Ahmed Hafi & Tim Goesch, 2009. "Urban water management: optimal price and investment policy under climate variability ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 53(2), pages 175-192, April.
    8. Larson, Silva & Stoeckl, Natalie & Neil, Barbara & Welters, Riccardo, 2013. "Using resident perceptions of values associated with the Australian Tropical Rivers to identify policy and management priorities," Ecological Economics, Elsevier, vol. 94(C), pages 9-18.
    9. Crase, Lin & O'Keefe, Sue & Dollery, Brian, 2009. "Water Buy-Back in Australia: Political, Technical and Allocative Challenges," 2009 Conference (53rd), February 11-13, 2009, Cairns, Australia 47640, Australian Agricultural and Resource Economics Society.
    10. R. Quentin Grafton & Michael B. Ward, 2008. "Prices versus Rationing: Marshallian Surplus and Mandatory Water Restrictions," The Economic Record, The Economic Society of Australia, vol. 84(s1), pages 57-65, September.

    More about this item

    JEL classification:

    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water

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