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Irrigator preferences for water recovery budget expenditure in the Murray-Darling Basin, Australia


Loch, A and Wheeler, S and Boxall, P and Hatton MacDonald, D and Adamowicz, WL and Bjornlund, H, Irrigator preferences for water recovery budget expenditure in the Murray-Darling Basin, Australia, Land Use Policy, 36 pp. 396-404. ISSN 0264-8377 (2014) [Refereed Article]

Copyright Statement

2013 Elsevier

DOI: doi:10.1016/j.landusepol.2013.09.007


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 Details

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:Environmental Policy, Climate Change and Natural Hazards
Objective Group:Environmental policy, legislation and standards
Objective Field:Environmental protection frameworks (incl. economic incentives)
UTAS Author:Hatton MacDonald, D (Professor Darla Hatton MacDonald)
ID Code:103156
Year Published:2014
Web of Science® Times Cited:27
Deposited By:TSBE
Deposited On:2015-09-23
Last Modified:2017-11-27

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