CoPS/IMPACT Working Paper Number G-222

Title: Water trading, buybacks and drought in the Murray-Darling basin: lessons from economic modelling

Authors: Glyn Wittwer and Peter Dixon


TERM-H2O, a dynamic, multi-regional model has become a useful tool for analysing water policy issues in the Murray-Darling basin. Available data indicate that farm factor mobility has been an important avenue of adjustment to sharply reduced water availability during drought. The regional impacts of water buybacks in the basin are much smaller than otherwise as a consequence of this mobility.

JEL classification: C54, Q11, Q15.

Keywords: CGE modelling, irrigation, agricultural economics, regional economies.

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