The basin plan, the buy-back and climate change: determining an optimal water entitlements portfolio

Adamson, D. (2012). The basin plan, the buy-back and climate change: determining an optimal water entitlements portfolio. In: Katherine A. Daniell, Water and climate: policy implementation challenges: proceedings of the 2nd Practical Responses to Climate Change Conference. 2nd Practical Responses to Climate Change Conference, Barton, A.C.T, (142-149). 1-3 May 2012.

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Name Description MIMEType Size Downloads
Author Adamson, D.
Total Author Count Override 1
Title of paper The basin plan, the buy-back and climate change: determining an optimal water entitlements portfolio
Conference name 2nd Practical Responses to Climate Change Conference
Conference location Barton, A.C.T
Conference dates 1-3 May 2012
Proceedings title Water and climate: policy implementation challenges: proceedings of the 2nd Practical Responses to Climate Change Conference
Place of Publication Barton, ACT, Australia
Publisher Engineers Australia
Publication Year 2012
Sub-type Fully published paper
ISBN 9780858259119
Editor Katherine A. Daniell
Start page 142
End page 149
Total pages 8
Collection year 2013
Language eng
Formatted Abstract/Summary
The long-term success of the Basin Plan and the Buy-Back will be judged by the capacity of the allocated public funding to deliver water to the environment, potable water supplies for the community and water for irrigation. Water property rights in the Murray-Darling Basin can be divided into four distinct groups (ground water, high security, general security and supplementary) reflecting their inherent capacity to deliver water supplies in response to climatic conditions in a given year. The price paid for these entitlements reflects their ability to provide water under known climate variability.

The optimal portfolio of water entitlements needs to encapsulate this information in order to determine which entitlements to purchase, the number needed and their location in the river system in order to deliver net social benefits. The optimal portfolio of entitlements is further complicated by the climate transitioning from a known mean and variance to a new mean and variance. The spatial impact of climate change on water resources is not uniform. Hence what is seen as a good portfolio now may in fact be sub-optimal in the future.

The aim of this paper is to illustrate the benefits of a state contingent framework for describing the optimal portfolio of water entitlements under a changing climate. By explicitly determining the real value of water entitlements in normal, drought and wet states of nature, we can determine the Buy- Back's ability to achieve the Basin Plan's goals and suggest an optimal entitlement mix to deliver longterm economic, social and environmental benefits under climate change.
Q-Index Code E1
Q-Index Status Confirmed Code
Institutional Status UQ
Additional Notes The conference theme for 2012 was 'Water and climate: policy implementation challenges'.

Document type: Conference Paper
Collections: Official 2013 Collection
School of Economics Publications
 
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Created: Tue, 26 Mar 2013, 15:43:17 EST by Mr David Adamson on behalf of School of Economics