EconSearch Completed Project

Project: Feasibility assessment of market based measures for SA water recovery for the Living Murray (2007)

Client: SA Department of Water, Land and Biodiversity Conservation

Collaborators: BDA Group and Megan Dyson

Summary: The Living Murray Environmental Watering Plan provided limited guidance for jurisdictions seeking to source outstanding commitments under the Living Murray. While there was uncertainty in relation to the environmental watering demands that water recovery measures should be seeking to meet, the remaining water to be recovered would largely be to meet irregular demands both in frequency and size. To assist consideration of alternative market-based measures, three alternative environmental water demand scenarios were examined in this report.

Based on a detailed analysis of water markets, water trading, environmental watering demands and a range of risk factors (including ensuing seasonal conditions and longer-term supply), the report provides recommendations of two packages of water for purchase by SA to meet commitments under its Innovative Market Options measure.