The Australian Water Market Experiment

Abstract

Intra-country and international water trading is being discussed widely as the limits of utilizing water resources become apparent. The establishment of a water market in Australia involved government policy, institutional management, the nature of a common resource, the environmental and economic consequences of privatization, and an assessment of social costs and benefits. In essence, it provides a case study in the potential of water trading and the political differences that may have to be reconciled if such a market is to operate in a socially equitable and environmentally sustainable manner

Keywords:

• Water markets
• environment
• closed resource
• generational equity
• political
• irrigation