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Pricing Water for Environmental Externalities in Western Australia


Gardner, A and Chung, V and Hatton MacDonald, D, Pricing Water for Environmental Externalities in Western Australia, Environmental and Planning Law Journal, 23, (4) pp. 309-326. ISSN 0813-300X (2006) [Refereed Article]


It is one of the premises of the Intergovernmental Agreement on a National Water Initiative that pricing water use for the environmental externality effects would contribute to the more sustainable use of water resources. This article explains the concept of the environmental externalities and the National Water Initiative pricing principles, considers the techniques of externality pricing and reviews the legal (constitutional and statutory) authority of the Western Australian government to set prices for water that include the costs of environmental externality effects of water use. It argues that the price of water to the licensed user and, subsequently, to the customers of water suppliers could reflect the annually determined scarcity of water in the surface or ground water system from which the water is taken. The article concludes with a discussion of the application of funds collected from the environmental externality pricing.

Item Details

Item Type:Refereed Article
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:103281
Year Published:2006
Deposited By:Faculty of Business
Deposited On:2015-10-01
Last Modified:2015-11-05

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