This study presents results from a survey of southern Murray-Darling Basin irrigators about the percentage of funds they would allocate towards a variety of current and hypothetical trade-off choices for recovering environmental water. The findings, allowing for state-based differentials, suggest irrigators marginally prefer infrastructure expenditure above the sum of a set of market-based options (namely water entitlement purchasing, temporary water market products and exit-based packages). However, their infrastructure preference weighting is less than current budget expenditure, and use of market-based options has higher support from irrigators than current policy recognises. Further, analysis of past and current infrastructure and market-based water recovery expenditures reveals large price-per-megalitre disparities, which may be explained by diminishing marginal returns. Targeting expenditure in line with preferences of irrigators may result in increases in economic efficiency.

Item Type:	Refereed Article
Keywords:	Economic analysis; Irrigator preferences; Water recovery; Budget allocation
Research Division:	Economics
Research Group:	Applied Economics
Research Field:	Environment and Resource Economics
Objective Division:	Environment
Objective Group:	Environmental and Natural Resource Evaluation
Objective Field:	Economic Incentives for Environmental Protection
UTAS Author:	Hatton MacDonald, D (Associate Professor Darla Hatton MacDonald)
ID Code:	103156
Year Published:	2014
Web of Science® Times Cited:	15
Deposited By:	TSBE
Deposited On:	2015-09-23
Last Modified:	2017-11-27
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