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An empirical assessment of the value of irrigation water: the case study of Murrumbidgee catchment* |
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| Authors: | Muhammad Ejaz Qureshi Ram Ranjan Sumaira Ejaz Qureshi |
| Institution: | M.E. Qureshi (email: ) is at CSIRO Sustainable Ecosystems, Gungahlin, Australian Capital Territory, Australia and the Fenner School of Environment and Society, Australian National University, Canberra, Australian Capital Territory, Australia. Ram Ranjan is at CSIRO Sustainable Ecosystems Wembley, Western Australia, Australia. Sumaira Ejaz Qureshi is at the Mathematical Sciences Institute, Australian National University, Canberra, Australian Capital Territory, Australia. |
| Abstract: | Evaluation of value of irrigation water is essential for supporting policy decision making relating to investments in the irrigation sector, efficient allocation of irrigation water and water pricing and for crafting policies to compare the variable impacts of water reform within and across sectors of the economy. This paper asks the question of how much an established irrigator would pay for water and at what price farmers planning to expand the area they have under irrigation would consider paying for the right to access water. An analytical framework is developed to estimate the net present value of both annual and perennial agricultural activities in the Murrumbidgee catchment. Using these estimates the total value of water used in Murrumbidgee catchment is estimated. An aggregate water supply curve is derived for the catchment from where water may be acquired from irrigators for environmental flows. |
| Keywords: | annual and perennial activities asset fixity environmental flows water allocation water price water supply curve willingness to pay |