Allocation trade in Australia: a qualitative understanding of irrigator motives and behaviour
Date
2012
Authors
Loch, A.
Bjornlund, H.
Wheeler, S.
Connor, J.
Editors
Advisors
Journal Title
Journal ISSN
Volume Title
Type:
Journal article
Citation
The Australian Journal of Agricultural and Resource Economics, 2012; 56(1):42-60
Statement of Responsibility
Adam Loch, Henning Bjornlund, Sarah Wheeler and Jeff Connor
Conference Name
Abstract
Governments in Australia are purchasing water entitlements to secure water for environmental benefit, but entitlements generate an allocation profile that does not correspond fully to environmental flow requirements. Therefore, how environmental managers will operate to deliver small and medium-sized inundation environmental flows remains uncertain. To assist environmental managers with the supply of inundation flows at variable times, it has been suggested that allocation trade be incorporated into efforts aimed at securing water. This paper provides some qualitative and quantitative perspective on what influences southern Murray-Darling Basin irrigators to trade allocation water at specific times across and within seasons using a market transaction framework. The results suggest that while irrigators now have access to greater risk-management options, environmental managers should consider the possible impact of institutional change before intervening in traditional market activity. The findings may help improve the design of intervention strategies to minimise possible market intervention impacts and strategic behaviour. © 2011 The Authors. AJARE © 2011 Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Asia Pty Ltd.
School/Discipline
Dissertation Note
Provenance
Description
Access Status
Rights
© 2011 The Authors