South-east Queensland suffered a record drought for several years after 2005 while accounting for almost one quarter of Australia?s entire population growth. This resulted in an urban water supply crisis. The state government?s response was to plan new dams, construct pipelines to create a water grid, and build a massive recycling plant and a desalination plant. Policy makers are in an invidious position, in so far as they will be accused of not preparing for the future should they underinvest in water infrastructure. Were a drought to continue indefinitely, it would be possible to justify much of the new infrastructure. Yet with a return of average rains, analysts may regard some of the new infrastructure as an excessively expensive means of maintaining a secure water supply.
|Title of host publication||Economic Modeling of Water: The Australian CGE Experience|
|Place of Publication||Dordrecht Netherlands|
|Pages||143 - 162|
|Number of pages||20|
|Publication status||Published - 2012|