Should Australia develop derivatives markets for water in agricultural regions? We will take the southern Murray-Darling Basin as a case study. We propose to integrate computable general equilibrium modelling with the theory of derivatives and to apply the integrated system to the issue of water. There have been structural changes in the economy since the mid-1990s, with irrigation water users competing with the environment and urban users. Irrigation regions with highly secure water supplies in the past have faced water shortages repeatedly over the past six years. This may motivate new strategies for securing water, including the use of derivatives to assist growers of perennial crops.
|Effective start/end date
|1/03/09 → 31/12/13
- Australian Research Council (ARC): A$180,000.00
- RMIT University