Economic instruments for water reform in Australia and Europe

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Presentation transcript:

Economic instruments for water reform in Australia and Europe David Adamson, School of Economics UQ Water Forum, July 45-, 2016 Sustainable Water Program @ the UQ Global Change Institute

Research question Water challenges are traditionally addressed with supply policies and engineering solutions. However, future benefits of this approach is limited as: must provide an equitable share of water resources = welfare loss (economic, social & environment) Understand the nature of bad events (droughts and floods) and past climate is not a good predictor of the future climate (i.e. future severity and frequency of bad events will and about less water Market based solutions may provide some insights into dealing with this (about understanding the nature of D & S and realigning them)

How I explored the research question… Working on Water Reform in Murray-Darling Basin (MDB) since 2004: Murray-Darling Basin Authority (MDBA) Technical Modelling Group for the Basin Plan PhD: reviewed the Basin Plan Buy-back SRWUIP Built a model for DNRM to price water property rights My DECRA reviews the implementation of the Basin Plan with a focus on delivering water to the environment

What I found… Australia is well ahead of Europe Property rights Political leadership Water trade Buy-Back is good Water-use efficiency bad Subsidies The past is a lousy predictor of the future

The ‘global change’ aspect of my water research Taking Australian examples to Europe. This included delivering a policy session at EAERE Zurich 2016, 22-25 June with a group of upcoming award winning ECRs. In the process of developing long term funding projects Europe and Australia. This is being done in collaboration with FEEM in Venice, Adelaide University, Alcaca University (Spain), Cranfield University, International Institute for applied Systems (Austria), FEEM (Italy) Model of the Po River Basin (Spain is the next example) Working on transaction costs of policy reform

Contact details: Dr David Adamson, School of Economics, UQ. d Contact details: Dr David Adamson, School of Economics, UQ d.adamson@uq.edu.au References: Adamson, D 2015, 'Restoring the Balance: Water Reform & the Murray Darling Basin Plan', PhD thesis, The University of Queensland, Loch, A & Adamson, D 2015, 'Drought and the rebound effect: a Murray–Darling Basin example', Natural Hazards, vol. 79, no. 3, pp. 1429-49. Adamson, D & Loch, A 2014, 'Possible negative sustainability impacts from ‘gold-plating’ infrastructure', Agricultural Water Management, vol. 145, no. Nov, pp. 134-44.