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Water

Explore the impact of climate change on water resources, the risks involved, and the need to plan for sudden shifts. Learn about water scarcity post-2030 and the importance of robust institutional design for sustainable water management. Discover the principles of water entitlement and allocation regimes, including tradable rights and environmental water considerations. Gain insights into National Competition Policy, water reform initiatives, and the significance of a sharing regime for environmental water sustainability. Stay informed about the evolving landscape of water policies and prepare for effective water resource management in a changing world.

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Water

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  1. Water A climate change perspective Mike Young Executive Director, The Environment Institute

  2. Water scarcity gap After 2030 Water Resources Group

  3. Thinking about climate change • What’s different? • Change is normal in business • Sudden shifts are normal • Prudent to plan on the assumption that it will occur • Lucky that we have the knowlegde

  4. Risk, uncertainty and science • Risk – distribution known • Uncertainty – range known • Surprise – Can explain after the event • Ignorance – The unknown unknowns • We all need to be aware that averages and probabilities may lead us to the wrong conclusions

  5. Two speed thinking • Slow variables • Fast variables

  6. - 1% - 3%

  7. Users Environment River Flow With half as much water, how much can you use? Users Users Environment Environment River Flow River Flow

  8. Language • Environmental water • How many types? • Flora and Fauna water • Conveyance

  9. Policy • Averse to change - procrastination • Avoid autonomous adjustment frameworks • Change is a process without end • Impede • Facilitate • Expedite • Be tolerant and learning from judgements made in a risky environment

  10. Water entitlement and allocation regimes • Principles • Tinbergen • One instrument per objective • Mundell’s Assignment principle • Assign for maximum policy leverage • Don’t change the purpose of each lever • Coase • Keep transaction costs as low as you can

  11. Single Title to Land with a Water Licence National CompetitionPolicy 1993/94Plus Cap Water Land Tradable Right Price Entitlement Sharesin Perpetuity Use licences with limits & obligations Bank-like Allocations Delivery Capacity Allocations SalinityShares SalinityAllocations Delivery Capacity Shares Water Rights Reform & unbundling National Water Initiative2004

  12. Water Reform Trading opened up Scarcity and Trading Source: Murray Darling Basin Commission, 2007

  13. Return to investment in entitlement systems & trading After Bjornlund & Rossini 2007

  14. Robust Institutional Design Robust (adj.)     Said of a system that has demonstrated an ability to recover gracefully from the whole range of exceptional inputs and situations in a given environment. • One step below bulletproof. • Carries the additional connotation of elegance in addition to just careful attention to detail. • Compare smart, oppose brittle. • Robust systems • Endure without the need to change their foundations. • Inspire confidence • Produce efficient and politically acceptable outcomes in an ever changing world. Source Dictionary of Jargon

  15. In a regulated system: What is environmental Water? = Volume of Water in the System

  16. www.adelaide.edu.au/environment www.myoung.net.au

  17. A sharing regime under 23 (2) (c) Held Env. Water (1-x)% Entitlement Portfolio Sustainable Diversion Limit Fully specified shareregime Consumptive uses x% Entitlement Portfolio Rules Based Water

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