Cover image for http://www.awe.gov.au/abares/publications/insights/
http://www.awe.gov.au/abares/publications/insights/
Resource Name:
http://www.awe.gov.au/abares/publications/insights/
Resource Type:
External Resource
Metadata
Title:
ABARES Insights - Australian water Markets
Series:
ABARES Insights
Series Issue:
Issue 2, 2019
Publication Date:
18/04/2019
Description:
Overview The ABARES Insights report focuses on water markets in Australia. It briefly describes why these markets were created, who the main participants are, where the main market activity is and how markets help facilitate short and longer term adjustment. It also identifies the main factors influencing water prices and some options for further reform. Key Issues The research shows that most market activity occurs in the southern Murray-Darling Basin and that most participants are irrigators. The main factor influencing water prices is the supply of water allocations, which is a function of the volume of water held in storage and seasonal conditions. * Prices peaked during the Millennium drought before declining to near zero during the 2011 and 2012 floods. The Commonwealth's water purchasing program has also influenced the supply of water for irrigation, with the reduction in supply leading to higher prices. * These purchases reduced allocations to irrigation by 14 per cent in 2015-16. The relaxation in restrictions on carryover in the late 2000's led to a significant increase in the volume of water carried over compared to earlier years with similar allocations. * This increase has acted to smooth water supply and water prices in recent years. There have been significant changes in the demand for water over the past 20 years, including an expansion in almonds in the Victorian Sunraysia, and a contraction in rice and pastures for dairy. * These changes have been facilitated by interregional trade, with this increase in trade leading to restrictions on trade binding more often, and differences in prices between regions. Based on these findings, the paper identifies two areas that may be worthy of further reform. These include: * Investigating the potential to ease restrictions on interregional trade. * Adopting more sophisticated carryover rules in the southern Basin, similar to in the northern Basin.
Resource URL Description:
0 : ABARES Insights - Snapshot of Australian water Markets. Link to the ABARES website - HTML

1 : ABARES Insights - Snapshot of Australian water Markets - PDF [2.3 MB]

3: description - format [size MB]

4: description - format [size MB]

5: description - format [size MB]
Publisher:
ABARES : Australian Bureau of Agricultural and Resource Economics and Sciences : Department of Agriculture
Author:
GOESCH Tim

DONOGHOE Manannan

HUGHES Neal
Right Management:
Use constraints: copyright

Other constraints: Licence type:Copyright

Other constraints: All material in this publication is licensed under a Creative Commons Attribution 4.0 International Licence except content supplied by third parties, logos and the Commonwealth Coat of Arms. The full licence terms are available from creativecommons.org/licenses/by/4.0/legalcode

Other constraints: This publication (and any material sourced from it) should be attributed as: Goesch, T , Donoghoe, M and Hughes, N 2019, Snapshot of Australian Water Markets, Australian Bureau of Agricultural and Resource Economics and Sciences, Canberra. CC BY 4.0. https://doi.org/10.25814/5cabfa02a6538
Identifier:
ISBN 978-1-74323-425-9

ISSN 2209-9123

DOI https://doi.org/10.25814/5cabfa02a6538
Asset Name:
pb_isawm9aa_20190418