Market-based Instruments (MBIs)
We undertook two projects as part of the National Market-based Instruments Pilot Program. This program is aimed at addressing some of the knowledge gaps about the ways in which MBIs can be successfully applied in Australia.Background
Market-based Instruments use trading mechanisms, auctions and price signals to influence the way in which people manage natural resources, and are therefore a promising tool for future environmental management.Ways in which MBIs can influence behaviour include altering market prices, improving the way a market works, or even creating a market where no market existed before.
Our Research
The two projects we are involved in are:Improving Water Quality Discharge from the Lockyer Creek
The aim of this project is to assess different market-based policy options for managing water quality in the Lockyer Creek catchment, South-east Queensland. The Lockyer Creek has been identified as a priority region in the National Action Plan for Salinity and Water Quality.
Issues of Enforcement and Regulation in the Application of Market-based Instruments
This project aims to address problems with enforcing and regulating MBIs, as expected efficiency gains may not materialise if these programs are not enforced well.
Issues of enforcement may include compliance/non-compliance of participants, liability between point and non-point sources of pollution, and information asymmetries in monitoring non-point sources.
Publications/Presentations
Workshop Presentation, August 2007.
Workshop Presentation, UQ Gatton, January 2008.
Stakeholder Workshop Presentation, GU, February 2008