Value-Driven River Management: A Murray River Case Study

Abstract

This paper outlines a quasi-economic hydrological model and management paradigm geared toward public and not-for-profit regulatory bodies, with particular reference to the southern Murray-Darling Basin in southeast Australia. This value-oriented model and paradigm bridges the gap between short-range hydrological forecasting and long-range economic planning. Decision-making is assisted by a scenario-based methodology with a clear distinction between baseline and marginal quantities. The paradigm has applications to seasonal planning, commercial water trading, environmental stewardship and structural adjustment. Specific applications to the Murray-Darling Basin include (i) evaluation of options for infrastructure upgrades and licence buybacks intended to address resource over-allocation, and (ii) revival and rationalisation of hydrological exchange rates for temporary and permanent water trades, with the aim of rigorously accounting for third-party effects.

Key Words:

• Regulated rivers
• operations planning
• environmental watering
• water trading
• public policy

Additional information

Notes on contributors

N G Bean

Prof Nigel G. Bean received his BSc degree in mathematics and Honours degree in applied mathematics from the University of Adelaide, South Australia, in 1988 and 1989, respectively. He received his PhD degree from the University of Cambridge, UK, in 1993, where he studied under Prof F. Kelly, FRS. Since then he has been employed at the University of Adelaide and was appointed Chair of Applied Mathematics in 2004. His main research interests are in stochastic modelling, particularly Markov chains, and applied operations research. Nigel is the recipient of the 2001 JH Michell Medal, awarded by the Australian and New Zealand Industrial and Applied Mathematics (ANZIAM) division of the Australian Mathematical Society, and the 2003 PAP Moran Medal, awarded by the Australian Academy of Science.

N D Jewell

Nathaniel D. Jewell studied mathematics, physics and computing at Flinders University, South Australia, before graduating from the University of Adelaide with a PhD in Applied Mathematics (Hydrodynamics and Aerodynamics). A research associate since 2008, Nathaniel initially conducted fundamental research on mixing processes in fluids, before switching to hydrology in 2011.