Water trade in the southern Murray-Darling basin

Deborah Peterson, Gavan Dwyer, David Appels, Jane Fry

Research output: Contribution to journalArticlepeer-review


In this paper, we use TERM-Water, a bottoms-up regional computable general equilibrium model of the Australian economy, to examine the regional effects of expanding trade of irrigation water in the southern Murray - Darling basin. We find that water trading dampens the impact of water allocation cuts on gross regional product (GRP). The benefits of introducing trading within irrigation districts are greater than those of a further expansion of trade between regions. Permitting trade of seasonal allocations allows irrigators to reallocate water in reaction to climatic conditions and water availability; and it is this flexibility that enables GRP reductions to be minimised.

Original languageEnglish
Pages (from-to)S115-S127
JournalEconomic Record (ER)
Issue numberSUPPL. 1
Publication statusPublished - Aug 2005


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