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Managing Environmental Water Rights in the Murray-Darling Basin: Balancing Markets and Sustainability

cooper-kirk avatar
cooper-kirk
16 diapositives · 317 Views · Nov 07, 2014

This article explores the complexities of managing the Commonwealth Environmental Water Reserve within the Murray-Darling Basin. It addresses the challenges of rights allocation and market mechanisms, including the need for volumetric ambitions and the role of buybacks. Key management issues, such as ensuring adequate water flows while accommodating varying environmental preferences, are discussed. The paper highlights the balance between temporary trade and modifying rights, emphasizing the necessity of scientific insights to evaluate trade-offs for sustainable water resource management.

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  1. Markets, Property Rights and Managing the Environmental Water Reserve Lin Crase

  2. Living with Reality • Basin Plan will set SDLs • PC estimates more than 2500Gl may be held by Commonwealth • > 20% of all extractive entitlements according to Australian Farm Institute • Guide points to 27-37% as volumetric ambition • Buyback to bridge any gap

  3. Some Starters • Commonwealth Environmental Water Reserve will represent a significant portion of MDB water resources • Major management challenges • Are the rights right?

  4. How does the Commonwealth presently manage environmental water? • An example, TLM • Complex hierarchical and inter-jurisdictional requirements

  5. At the Site Level Barmah-Millewa Forest:

  6. Looks simple, but it’s not Coordination committee Technical Advisory Committee Consultation Reference Group Project Officer

  7. So if environmental water managers are given scope to work in market what does it look like?

  8. Water rights and markets Present focus is on volume with limited attention to delivery characteristics Access (permanent) markets Allocation (temporary) markets Others Use Works and network Quality

  9. How it works in reality Dam managers Allocation announcements Use of temporary trade to redress imbalance between announcements and Opportunity costs Risk preferences

  10. Carryover • An inter-seasonal right • Attenuated relative to other rights

  11. What does the environmental water manager want? • More water in stream • More variability • More early season flow

  12. What does the environmental water manager want? • More water in stream • Volume will do this, up to a point • More variability • Carryover is weaker right • More early season flow • Allocations don’t favour this • Temporary trade? • Important empirical question

  13. Concluding remarks • Environmental water holder will control significant volumes • Volumes have limitations when considered against environmental preferences • Temporary market versus modifying rights • Potential for other products to ease pain of adjustment • Need science to estimate trade-offs between volumetric and other dimensions

  14. Thank You