The Draft Basin Plan: Making it Work Paper presented at Risk and Sustainable Management Group Workshop, Brisbane 21 October 2010.

Slides:

Advertisements

Similar presentations

DECENTRALIZATION AND FINANCING OF SERVICES Gordana Matković Sofia, July 2007.

Advertisements

Leading the Way? Maines Experience in Expanding Coverage: Lessons for other States Cyber-Seminar sponsored by The Commonwealth Fund's State Innovations.

Community Strategic Guidelines DG AGRI, October 2005 Rural Development.

The economics of climate change: the messages to Africa Presentation for the CDM DNA Forum Addis Ababa, 6 th October 2007 Hannah Muthoni Ryder.

Conflict Affected and Fragile States Facility (CAF) Environmental and Social Challenges Trust Fund Two new Facilities: WBG Donor Forum – Paris – May 19,

Vision For the Future of Water in Kansas. 1.Technology and Crop Varieties 2.Water Management 3.Water Conservation 4.New Sources of Supply Breakout Topic.

Wrap-up session Theme 5 Topic 5.2 – Pricing Strategies 5 th World Water Forum, 20 March 2009 – Istanbul, Turkey Monica Scatasta Environment Directorate,

Key Messages National Riparian Lands Research & Development Program Assessing Community Capacity for Riparian Restoration.

Promoting conservation and public goods provision Lecture 21. Economics of Food Markets Alan Matthews.

Commonwealth Water Act 2007 Implications for the Murray-Darling Catchments.

The future cohesion policy: clusters as critical instruments to implement smart specialisation Claus Schultze, Policy Analyst, European Commission, DG.

Current UK and EU Policy on Water Management Thames Tunnel Commission 29/7/11.

Competing Narratives for Sustainability: Is Less More or Must We Do More With Less? USDA Agricultural Outlook Forum Can Sustainable Agricultural Intensification.

Queensland Treasury Department Role and Function of Treasury Financial Framework Charter of Fiscal and Social Responsibility and Priorities in Progress.

Financial Economic Analysis of the International Financing Facility Randall Dodd Financial Policy Forum John Ruthrauff Interaction January 26,

Modelling sustainable management of the Murray- Darling Basin John Quiggin Risk and Sustainable Management Group Schools of Economics and Political Science,

An Assessment of the Efficiency of Water-Trading Markets in the Murray-Darling Basin James Smits Supervised by Professor Snow Barlow University of Melbourne,

NatStats ‘08 Conference “The importance of water data for National Water Reform” Ken Matthews Chairman and CEO National Water Commission Friday, 21 November.

The Rehabilitation in the Community of Persons with Mental Disabilities Law of Israel: Challenge and Opportunity in a Changing Mental Health Service System.

Water policy reform – moving ahead Presentation for the Water Policy in the MDB Workshop 22 October 2010 Will Fargher, General Manager Water Markets and.

The Environment Institute Where ideas grow Striking the Balance between Food and Fibre Production and the Environment Mike Young Executive Director, The.

Economic Institutions for Sustainable, Just and Efficient Food System Joshua Farley Community Development and Applied Economics Gund Institute for Ecological.

1 Recent and Emerging Water Policy Reforms in Australia Paper presented at National Taiwan University – Taipei 14 September 2006 Dr. Henning Bjornlund.

Sustainable tourism. What is sustainable tourism? Tourism managed so it does not threaten the natural, social and cultural resource base on which the.

Why are economic and financial instruments needed? A presentation made by Noma Neseni, IWSD.

IWRM as a Tool for Adaptation to Climate Change Introduction to IWRM and Climate Change.

Strategic Commissioning

Regional Responses to Climate Change. Framework Vision->Strategy -> Objective -> Resources ->Target-> Actions Liliendaal Declaration Vision Reduce GHG.

Thailand Strategies for Pro-Poor Growth Banchong Amornchewin Thailand International Development Cooperation Agency.

OPTIMISING THE SOCIO-ECONOMIC OUTCOMES UNDER THE MURRAY- DARLING BASIN PLAN – Water Policies and Programs Presentation to ABARES Outlook Conference, Canberra.

Basic elements of development dynamics Livelihood Strategies Available Resources Well being Outcomes Context Politics and Institutions Risk Changes in.

Chapter 2 – Economics.  Four different types of economic systems have evolved throughout history as cultures, societies, and nations have struggled with.

Facilitating Efficient Agricultural Markets in India An Assessment of Competition and Regulatory Reform Requirements Final Workshop February 2011, New.

Chapter 10 Managing Information Systems and Technology Investments.

Public Policies for Financing Sustainable Development Cielito F. Habito, Ph.D. Professor, Ateneo de Manila University Former Secretary of Socioeconomic.

The Environment Institute Where ideas grow Lessons about water trading from across the ditch and elsewhere Mike Young Executive Director, The Environment.

Advancing Natural and Nature-Based Infrastructure Solutions through Policy and Partnerships Kim Penn, NOAA Office for Coastal Management.

The Environment Institute Where ideas grow Securing our Water Supplies Mike Young Executive Director, The Environment Institute.

TOPIC 3.2 ENSURING ADEQUATED WATER RESOURCES AND STORAGE INFRASTRUCTURE TO MEET AGRICULTURAL, ENERGY AND URBAN NEEDS.

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Selecting and Designing Concession / PPP Projects Martin Darcy.

IRRIGATION AKA ECONOMIC DEVELOPMENT.  Double the value of agriculture by  Add 500,000 acres of irrigation.  Assist local producer in efforts.

Estimating and Comparing Costs and Benefits of Adaptation Projects in Africa – Project AF47: Technical Progress Mac Callaway AIACC African Workshop March.

Water Policy in the Murray Darling Basin October 2010 Discussant David Pannell ARC Federation Fellow.

Setting the Murray-Darling Basin Scene R. Quentin Grafton 1.

DRAFT MURRAY DARLING BASIN PLAN. Where is the Murray–Darling Basin? Large system in south-eastern Australia 1 million km 2 1/7 area of Australia Contains.

The Environment Institute Where ideas grow Environmental Policy Water Policy & Water Trading Mike Young Executive Director, The Environment Institute.

Economic Impacts of SDLs and Water for the Future Peter Gooday 22 October 2010.

Presentation overview Drivers leading to a future with less water Management of water resources in the MDB Water for the Future initiatives assisting.

The Relu Programme and Animal and Plant Disease Management.

2004 Tributary Strategies: Assessment of Implementation Options Steve Bieber Water Resources Program Presented at: COG Chesapeake Bay Policy Committee.

Promoting conservation and public goods provision Lecture 29. Economics of Food Markets Alan Matthews.

Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide Extract from Griffith University Lighthouse Lecture on Future.

Murray Darling Basin Plan. Key Knowledge and Skills Current management policies and strategies to implement these policies The effectiveness of water.

Sustainability Elements of the ARRA, and Getting the Most out of Stimulus Funding Jeannie Renne-Malone, LEED AP National Director – Climate Change & GHG.

The Environment Institute Where ideas grow The Murray-Darling Basin Mike Young Executive Director, The Environment Institute.

Ecologic.eu Brussels, 19 March 2009 Environmental & economic impact of water pricing and quotas in the agriculture sector What do we learn from practical.

Economics Analysis of the choices people and governments make in allocating scarce resources Microeconomics Study of small economic units, such as individual.

 The Future of Water Conflicts. What can you think of?  What factors can you think of that will affect the future water security of different countries?

The Environment Institute Where ideas grow The cutting edge of NRM Mike Young Executive Director, The Environment Institute.

From choice, a world of possibilities Sexual and reproductive health and rights as a development issue John Worley Global Advisor: Public Policy Building.

Convention of the Protection and Use of Transboundary Watercourses and International Lakes Developing a guidance on water and climate adaptation for the.

After the crisis Paper presented to Whitlam Institute Series on the Financial Crisis, 23 July 2009.

Conclusions and Recommendations

Unscrambling the Toll Road Egg

water Water Trading: Supporting resilient regional communities

Economic Instruments – Buyback: Lessons from the Murray-Darling Basin

Climate Change and River Basin Planning

Addressing the challenge of water scarcity and droughts

Water scarcity and droughts

Economic Foundations of Political Legitimacy

Presentation transcript:

The Draft Basin Plan: Making it Work Paper presented at Risk and Sustainable Management Group Workshop, Brisbane 21 October 2010

John Quiggin Federation Fellow Risk and Sustainable Management Group, Schools of Economics and Political Science,University of Queensland

Making it Work: Three Key Principles Willing sellers = No cuts in allocations Buyback price should be basis for assessment of infrastructure projects Social infrastructure should be funded where benefits are greater than for irrigation infrastructure

No cuts in allocations Voluntary sales are not “cuts” A major communications failure Has partly derailed process, but can be restored Need to understand history of risk allocation

The National Water Initiative Attempt at a fully specified risk allocation Governments bear risk of changes in policy Users bear risk of new information about changes in sustainable allocations Risk of climate change is shared

The National Water Action Plan (2007) Effectively abandoned market-based approach A big bucket of money $6 billion for on-farm works $3 billion for buybacks All back-loaded

Restoring the Balance in the Basin Shifts priority to buyback But no reallocation of funds Effectively precluded substantial cuts in allocations Undermined NWI risk allocation principles Cutting the Gordian knot

The Draft Basin Plan All changes are policy changes Hence Commonwealth must bear entire risk All reductions must arise from voluntary choices Buyback the only realistic option

Market repurchase and infrastructure improvements No necessary conflict Market price should inform benefit-cost evaluation Most large projects fail this test so far Wimmera Food Bowl

Repurchase will drive private infrastructure improvements Water savings on-farm allow sale of entitlements Need to be careful in accounting for return flows Laser levelling

What kind of infrastructure? Hard infrastructure: Irrigation works, other physical infrastructure Soft infrastructure: Education, health, services, support for tourism Physical investment or operating support

Targets and instruments If goal is to minimise reduction in agricultural output, priority should go to hard irrigation infrastructure Implied rejection of markets If main concern is with communities and people, soft infrastructure is more likely to be productive

Funding Wisely used, $10 billion sufficient to meet all goals Buyback, cost-justified irrigation infrastructure, soft infrastructure for communities, adjustment assistance Need to free funds currently earmarked for irrigation infrastructure

Where are we now? A bumpy start, but... As close to a solution as we have ever been

The Draft Basin Plan: Making it Work Paper presented at Risk and Sustainable Management Group Workshop, Brisbane 21 October 2010