PRELIMINARY ECONOMIC ASSESSMENT OF GROUNDWATER EXTRACTION RULES

Authors

  • M. EJAZ QURESHI,

    1. CSIRO Land and Water
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  • SUMAIRA E. QURESHI,

    1. School of Mathematics and Statistics, Canberra University
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  • TIM GOESCH,

    1. Australian Bureau of Agriculture and Resource Economics
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  • AHMED HAFI

    1. Australian Bureau of Agriculture and Resource Economics
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    • The work was completed when the principal author was at ABARE, Canberra. Although this paper is based on earlier work funded by and reported to GWRDC, significant changes have been made after receiving useful and constructive comments and suggestions from Steve Harrison, Jim McColl, and John Ward. However, any views expressed in this paper are the authors' sole responsibility


Abstract

Increased use of irrigation water has imposed stresses on groundwater systems. Declining groundwater levels and spring discharges have heightened water users' concerns about the sustainability of regional economies. Recently there have been initiatives toward groundwater regulation and restrictions on water use have either been implemented or now being proposed. This study investigates the costs imposed on irrigators by restricting groundwater use and the potential for more flexible annual extraction rules that will take account of seasonal variations in rainfall to reduce these costs. The dynamics of the decision-making process on water use have also been accounted for when irrigators have some flexibility over annual extractions.

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