COUNTER-CYCLICAL TRADE OF WATER ALLOCATIONS

Category
Project

The Living Murray – a Commonwealth-State joint venture for managing the Murray-Darling basin – had accumulated 500 Gigalitres of water entitlements to be used for environmental purposes. The issue was the feasibility and commercial viability of engaging in counter-cyclical trade with agricultural irrigators when water demand is very high. Activities performed involved the assessment of the potential benefits and costs of water trade, including transactions costs and environmental implications.