Water Markets
The focus of this research is the application of experimental economic laboratory methods to the evaluation of alternative water market institutions.
Background
In many areas, the economic, practical, and environmentally sustainable extent of water harvesting has now been reached. In the Murray-Darling, for instance, a 'cap' on further water diversions has been imposed. Under COAG policy [Sect. 2.5], further economic development (while protecting environmental values) will require that better use be made of water already being harvested. This entails a basin-wide view for hydrologic assessment, consideration of supply uncertainty, a redefinition of water entitlements (allowing for transfers through trading), and an allocation for environmental flows. Many hydrologic issues need to be resolved before managers can be confident that the current allocation/trading system is sustainable.
Our Research
This project provides fundamental insights into the behaviour of water markets that will bound water allocation scenarios to be modelled. There is strong demand within the water industry for this kind of data. Institutional testing is carried out both in the laboratory with university students and in the field with agricultural enterprises (nonpoint firms).
Research Outcomes
Research Affiliations
Australian Rivers Institute
The Australian Rivers Institute (ARI) was established by Griffith University in 2006 to provide a focus for Australia's largest group of university-based scientists with expertise in river, catchment, and coastal research and education, and builds on the University's long-standing reputation in environmental science.
ARI is committed to promoting a "whole-of-water-cycle" water catchment and river-coastal linkage management philosophy and, through providing easier access to a co-ordinated skills base, enhancing capacity building initiatives in Australia and across the Asia-Pacific region.
