Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide, Adelaide, Australia 5005 OECD Expert Meeting on “Sustainable.

Slides:

Advertisements

Similar presentations

Trading resources to highest value use Prof. Mike Young Research Chair, Water Economics & Management School of Earth and Environmental Sciences The University.

Advertisements

Reconfiguring the River The 4 th Annual Water Symposium, 20 February 2009, Darling Harbour, Sydney Prof Mike Young, Executive Director Research Chair,

Regulatory Frameworks in OECD countries and their Relevance for India Nick Malyshev Senior Counsellor Public Governance and Territorial Development OECD.

Mexico’s initiatives with respect to Renewable Energies World Bank February 2012 Washington D.C. Alejandro Peraza-García Director General of Electricity.

Trading into and out of trouble Australian water allocation & trading experience Zaragoza, 29 July 2008 Water Economics and Financing Prof Mike Young,

Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide "Irrigation Technology to Achieve Water Conservation,” Zaragoza,

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.

IAAE 2006 Water Resource Policy. IAAE Who is winning? Who is bravest?

The Environment Institute Where ideas grow Putting a price on water Will markets work? Mike Young Executive Director, The Environment Institute.

Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide “Water, wine and horticulture: A Scholefield Robinson Horticultural.

Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide 4 th Annual Australian Water Summit, Sydney, 29 th April 2008.

Trading out of trouble: Urban water price and trading opportunities Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide.

Life Impact The University of Adelaide Prof. Mike Young Executive Director The Environment Institute The University of Adelaide Singapore 3 rd Tuesday,

An Introduction to regulation, it ’ s significance and rationale Kevin Hinde.

Training of Trainers Integrated Water Resources Management Enabling Environment and Institutions.

The Environment Institute Where ideas grow Running out of water What would a robust allocation system look like? Mike Young Executive Director, The Environment.

Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide Climate Change and Business, Brisbane 30 th August 2007 Reducing.

Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide NSW Farmer’s Federation Coleambally 14 th February 2008 Water.

Water Reform: Learning from Australia Irrigation New Zealand Conf, 14 October 2008 Prof Mike Young, The University of Adelaide.

Exploring the use of water pricing as a policy tool to improve water resource use efficiency in the agricultural sector FAO, OECD and IWMI Session: “Drops.

Facilitating and Expediting Adaptation: Learning from Australia Adaptation to climate change in the desert Southwest, Tucson Arizona, January 2009 Prof.

The European Union Water Initiative in the EECCA countries: Recent Developments Nicola Di Pietrantonio Neighbourhood Directorate European Commission Bishkek,

Strategy and Regulatory Frameworks

Rural - Urban Water Inter-Dependence Mike Young The University of Adelaide.

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

The Environment Institute Life Impact The University of Adelaide Water Governance Reforms Lessons from Australia Institute of Water Policy, LKY School.

The Environment Institute Life Impact The University of Adelaide Fixing the River Murray What still needs to be done? IRR Regional Water Conference, Adelaide.

Allocating and managing water scarcity in an ever- changing world: Lessons from Australia 23 October 2009 Prof Mike Young Director, The Environment Institute.

Regulation and the Governance Agenda in the 21 st Century Josef Konvitz, Public Governance Directorate.

Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide Water Where is your future headed?

Life Impact The University of Adelaide Prof. Mike Young Executive Director The Environment Institute The University of Adelaide Melbourne 25th June 2009.

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

The Environment Institute Where ideas grow Water Futures Where is the world headed and what is Alberta heading for? Mike Young Executive Director, The.

Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide “EPI” Water Conference, Berlin, 26 th January 2012 Unbundling.

Water Security and Regional Development in Australia ARCRNSISS-ANZRSAI Conference Adelaide, 2 nd December 2008 December 2008 Prof Mike Young, The Environment.

Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide Research Tuesday Lecture University of Adelaide, 9 th October.

Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide AMCHAM Luncheon, 15 th February 2008 Water fundamentals.

1 Instruments for Adaptive Water Management R. Quentin Grafton Crawford School of Economics and Government Australian National University

Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide MBI 30 th September 2008 Water Markets: Trading into and out.

Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide Kyabram 17 th June 2008 Your future: Where is it headed?

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

Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide NSW Country Press Association AGM, 26 th October 2007 Water.

Water What can the nut industry learn from Australia? Peanut and Tree Nut Processors Association Convention Bahamas, January 2009 Prof Mike Young Executive.

Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide CEDA Water Forum, Adelaide, 7 th April 2008 An implementation.

Water What can the irrigation industry learn from Australia? 31 July 2009 Prof Mike Young Director, The Environment Institute Research Chair, Water Economics.

Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide NRM Committee, SA Parliament, 27 th February 2008 A future-proofed.

SA Banker’s Briefing on the MDB Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide SA Banker’s Briefing, Friday.

The Role of the Government and Markets in Water Reform: Learning from Australia Alberta, November 2008 Prof Mike Young, The University of Adelaide.

Prof. Mike Young* and Jim McColl** * Research Chair, Water Economics and Management The University of Adelaide ** Research Fellow, CSIRO Land and Water.

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

Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide AARES Symposium, Climate, Water & Adaptive Responses, Adelaide.

Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide "Irrigation Technology to Achieve Water Conservation,” Zaragoza,

Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide Almond Growers Conference, Barossa Valley, 30 th October 2008.

The Environment Institute Where ideas grow Managing water across the full range of stakeholders Mike Young Executive Director, The Environment Institute.

The Environment Institute Where ideas grow Chewing over the CEWH Mike Young Executive Director, The Environment Institute.

Melbourne, 17 th November 2008 Future-proofing the Basin Prof Mike Young, The University of Adelaide Where are water markets taking us?

The Role of the Government and Markets in Water Reform: Learning from Australia University of Arizona, January 2009 Prof Mike Young, Executive Director.

Water science gaps & media messages? Prof. Mike Young Research Chair, Water Economics & Management The University of Adelaide 5 th World Conference of.

Shepherding Water Professor Mike Young Research Chair, Water Economics and Management Executive Director, The Environment Institute The University of Adelaide.

The Environment Institute Where ideas grow Water A climate change perspective Mike Young Executive Director, The Environment Institute.

Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide Policy.

The Environment Institute Where ideas grow Water Reform How far and where do we need to go? Mike Young Executive Director, The Environment Institute.

Water for Good Prof. Mike Young Director, The Environment Institute

Trade and Agriculture Directorate, OECD, Paris, France

A future-proofed MDB? Prof. Mike Young

SEWORLD – ELECTRIC SECTOR IN THE WORLD Risks to Water Security

Water Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide Some Like it Hot, Renmark, 6th November 2008.

In a regulated system: What is environmental Water?

SUSTAINABLE ENERGY SUPPLY

Presentation transcript:

Prof. Mike Young Research Chair, Water Economics and Management The University of Adelaide, Adelaide, Australia 5005 OECD Expert Meeting on “Sustainable Financing for Affordable Water Services – From Theory to Practice” Paris, th November 2007 Rural Water Pricing Issues

2 The Aim A constellation of water allocation, pricing, trading, administrative, governance and trading arrangements that 1.Autonomously results in dynamically efficient  Investment in infrastructure  Water use 2.Is seen to be equitable in process and equitable in outcome 3.Does not increase environmental problems

3 The Tinbergen Principle If water use is to remain efficient through time  (deliver dynamic economic efficiency in a changing world) Use a separate policy instrument to achieve each objective Implied Recommendation  Use a suite of pricing arrangements  Charges  Markets  Interacting institutions  Build in competition among sectors, businesses and enterprises  Don’t try and set a “single” all encompassing price

4 Markets vs regulatory intrusion 1.Well-designed water markets can discover value (marginal opportunity cost) of water entitlements, water allocations and delivery entitlements 2.The extent to which regulations intrude into market processes reflects failure in institutional design 3.The challenge is to put in place the sequence of reforms necessary to build an institutional framework that can produce efficient outcomes through time

5 Adverse climate change Mean supply 10,000 River & Storage Evap 2,000 Flow to sea 2,000 Sub-total 6,000 Environment Use 2,000 Consumptive Use 4,000 0 Mean supply 7,000 River & Storage Evap 2,000 Flow to sea 2,000 Sub-total 3,000 Environment Use 2,000 Consumptive Use 1,000 0 In Mediterranean climates, a 10% decline in mean rainfall results in around a 30% decline in mean storage inflow

6 Change Management Issues 1.Formal Supply contracts v’s exit fees 2.Autonomous v’s “planned” structural adjustment a)Impede b)Facilitate c)Expedite 3.Competitive pricing neutrality among regions 4.Market barriers to trade

7 Rural Pricing Issues 1.Full v’s partial definition of allocation and delivery entitlements 2.Markets and charges v’s controlled prices and rationing 3.Postage stamp v’s nodal pricing 4.Pricing to include the cost of externalities v’s separate incentive-based externality management 5.Recovery v’s non-recovery of centralised planning and management costs

8 Regional Development Issues 1.Cross-subsidies, grants, etc v’s private investment and private control 2.Competitive neutrality among inter-connected water bodies 3.Competitive neutrality among non-connected water bodies

9 Rural Governance Issues 1.Basin wide system governance v’s nested governance arrangements 2.Single v’s multiple supply management and businesses 3.Independent price and competition regulation 4.Fast, low cost trading v’s administratively complex and impeded inter-regional competition adjustment processes

10 Infrastructure Investment Issues 1.Full cost upper bound pricing v’s partial cost pricing 2.Recovering the cost of redundant infrastructure 3.Allowing for private investment in infrastructure 4.Independent price regulators v’s political control of price setting

11 Rural urban pricing differences The probability of rural distribution infrastructure becoming redundant is greater The cost of maintaining infrastructure is likely to be shared among fewer and fewer rural water users.

Contact: Prof Mike Young Water Economics and Management Phone: Mobile: Subscribe to Droplets at