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A multi-period positive mathematical programming approach for assessing economic impact of drought in the Murray-Darling Basin, Australia AgEcon
Qureshi, Muhammad Ejaz; Ahmad, Mobin-ud-Din; Whitten, Stuart M.; Kirby, Mac.
In the last decade, the Murray-Darling Basin (MDB), Australia faced a severe drought which affected its agriculture production. Sustainable diversion limits as proposed in the Australian Government’s basin plan together with climate change is expected to impact on future agriculture production and development in the MDB. We developed a biophysical-economic mathematical model calibrated against the observed multi-period land use data utilising the positive mathematical programming (PMP) approach to evaluate the impacts on agricultural production activities of a range of climate events and policy options. This is an extension of our previous work where the model was calibrated against a single year and focus was on the southern MDB only. The multi-period...
Tipo: Presentation Palavras-chave: Integrated hydrology and economic model; Multi-period calibration; Climate change; Drought; Agriculture; Positive mathematical programming; Resource /Energy Economics and Policy.
Ano: 2012 URL: http://purl.umn.edu/124418
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Where the rubber hits the road: Biodiversity conservation incentives in theory and practice AgEcon
Coggan, Anthea; Whitten, Stuart M.; Bennett, Jeffrey W..
The lack of appropriate incentives through conventional markets is a major cause of deterioration of biodiversity on private land. In response, governments often intervene through changing the incentives faced by landholders. There are, however, potentially many ways that the incentives to private landholders could encourage improved conservation of native vegetation on private lands. These policies and incentives leverage change in different ways and are suited to differing opportunities and objectives and incur different costs. Our goal in this paper is to provide some guidance to support incentive selection and design decisions. We initially develop a framework for incentive decision, design and implementation. The framework is supported and illustrated...
Tipo: Conference Paper or Presentation Palavras-chave: Biodiversity; Incentives; Private land; Resource /Energy Economics and Policy.
Ano: 2007 URL: http://purl.umn.edu/10397
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Putting theory into practice: market failure and market based instrument design AgEcon
Whitten, Stuart M.; Coggan, Anthea; Reeson, Andrew; Gorddard, Russell J..
The use of market-based instruments (MBIs) to provide and protect ecosystem services has gained significant attention in Australia. Despite their popularity, MBIs are not appropriate for the provision of all ecosystem services. Rather, MBIs must be carefully designed given the ecosystem service outcomes desired, while meeting the needs of participants. In this paper we detail the importance of a robust theoretical structure to underpin the selection and design of an MBI. In particular, we demonstrate the role of identifying and analysing the nature of the market failures present, and their implications for instrument design. Our conclusions are illustrated using several regional MBI case studies.
Tipo: Conference Paper or Presentation Palavras-chave: Market failure; Market based instrument; Incentives; Marketing.
Ano: 2007 URL: http://purl.umn.edu/10441
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Markets for ecosystem services: Applying the concepts AgEcon
Whitten, Stuart M.; Salzman, James; Shelton, Dave; Procter, Wendy.
In recent times, use of market-based instruments to facilitate enhanced protection or production of ecosystem services has achieved a high public profile. However, much work remains to apply these tools in practice. Particular issues include definition and measurement of ecosystem services, development of institutions and mechanisms to facilitate trade and integration of these instruments into the broader natural resource management agenda and toolbox. In this paper these issues are explored with respect to pilot markets for ecosystem services in three case study catchments. Emphasis is placed on pilot selection rationale and identification of key facilitative mechanisms and institutions.
Tipo: Conference Paper or Presentation Palavras-chave: Research Methods/ Statistical Methods.
Ano: 2003 URL: http://purl.umn.edu/58269
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Experiments with regulations & markets linking upstream tree plantations with downstream water users AgEcon
Nordblom, Thomas L.; Reeson, Andrew; Finlayson, John D.; Hume, Iain H.; Whitten, Stuart M.; Kelly, Jason A..
Land-use change in upper catchments impact downstream water flows. As trees use large amounts of water the expansion of upstream plantations can substantially reduce water availability to downstream users. There can also be impacts on downstream salinity due to reduced dilution flows. In some jurisdictions afforestation requires the purchase of water rights from downstream holders, while in others it does not, effectively handing the water rights to the upstream landholders. We consider the economic efficiency and equity (profitability and distributional) consequences of upstream land use change in the presence of a water market under alternate property rights regimes and different salinity scenarios.
Tipo: Conference Paper or Presentation Palavras-chave: Experimental-economics; Tree-plantations; Environmental-services; Urban; Irrigation; Stock & domestic; Water use; Land use.
Ano: 2009 URL: http://purl.umn.edu/47945
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Development offsets for ecosystem services in a rural residential development context: issues for the Murrindindi Shire application AgEcon
Coggan, Anthea; Whitten, Stuart M.; Collins, Drew.
Rural residential development could have a positive or negative effect on the supply of ecosystem services. In most cases, the effect tends to be negative. One way of managing the impact is through a market based instrument. In this paper we present a development offset MBI as a way of cost effectively managing the ecosystem service impact of development in the Murrindindi Shire, Victoria. In this paper we note that design of the instrument is critical to the success of any MBI, including development offsets. Key development offset design issues discussed in this paper include defining what is traded (the metric), facilitating trades in a thin marketplace with high transaction costs, and ensuring the offset is commensurate with the impact.
Tipo: Conference Paper or Presentation Palavras-chave: Rural residential development development offset; Market based instrument design Environmental Economics and Policy.
Ano: 2007 URL: http://purl.umn.edu/10363
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Preliminary principles to guide best practice water quality regulation from an economic perspective AgEcon
Coggan, Anthea; Whitten, Stuart M.; Greyling, Tertius.
Regulatory regimes intended to enforce changes to land use or management impose costs on landholders and governments. Landholder costs comprise changes to capital equipment, changes to crop or enterprise management including direct compliance costs, opportunity costs of lost production, and transaction costs from informing themselves about regulatory requirements, potential compliance strategies and administration associated with implementation of these strategies. Governments must design and implement the regulatory framework along with an appropriate compliance structure and other associated costs. In this paper we apply economic theory, in particular relating to institutional economics and transaction costs, and the degree of heterogeneity landholder...
Tipo: Conference Paper or Presentation Palavras-chave: Diffuse source pollutants; Regulations; Economic efficiency; Transaction costs; Water quality; Resource /Energy Economics and Policy.
Ano: 2010 URL: http://purl.umn.edu/58890
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When should biodiversity tenders contract on outcomes? AgEcon
Gorddard, Russell J.; Whitten, Stuart M.; Reeson, Andrew.
Making conservation program payments conditional on outcomes offers potential efficiency and innovation improvements over input based contracts. This paper explores the trade-offs involved in choosing the payment criteria for biodiversity tenders. A model where the budget for a conservation tender can be allocated to input, outcome or mixed payments is used to explore the impacts of hidden actions, adverse selection, and landholder risk aversion on the optimal policy design. We discuss the implications of these results for the design of the ‘Nest Egg’ tender. This tender is targeting habitat and breeding of ground-nesting birds in the New South Wales Murray Catchment.
Tipo: Conference Paper or Presentation Palavras-chave: OUTCOME CONTRACTS; RISK AVERSION; BIODIVERSITY TENDERS; CONTRACT DESIGN; NEST EGG; Environmental Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/5979
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Developing Environmental Service Policy for Salinity and Water: Experiments with Regulations and Markets Linking Watersheds with Downstream Water Users AgEcon
Nordblom, Thomas L.; Reeson, Andrew; Whitten, Stuart M.; Finlayson, John D.; Kelly, Jason A.; Hume, Iain H..
Shortfalls in water supplies are perhaps the greatest practical NRM policy concern in Australia today, looming larger in many minds than the great international debates on greenhouse gasses, climate change and biodiversity. Because forest land cover uses more water than any other, wide expansion of upstream tree plantations can significantly reduce water yields upon which downstream urban, agricultural and wetlands depend. We consider the economic efficiency and equity (profitability and distributional) consequences of upstream land use change. The ‘environmental services’ of concern in our study are the mean annual quantities and qualities (volumes and salt concentrations) of water flowing from upper parts of a catchment to the downstream interests...
Tipo: Conference Paper or Presentation Palavras-chave: Experimental economics; Land use; Rival water uses; MBI; Environmental Economics and Policy; Resource /Energy Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/6249
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Improving NRM Investment through a policy performance lens AgEcon
Whitten, Stuart M.; Coggan, Anthea; Pert, Petina; Sherman, Bradford.
Choosing a mechanism to encourage landholders to change their land management in order to deliver environmental outcomes is a complicated process. Careful instrument selection may count for little if uptake and adoption are insufficient to meet performance targets. Similarly, investors may require assurance that the proposed investment will deliver the stated goals. In order to reduce the uptake uncertainty facing policy makers we evaluate and describe several possible methods to guide and frame adoption targets. We conclude that referring to past adoption experience of a wide range of mechanisms offers the best approach to setting feasible adoption targets for future mechanisms. We call this adoption points of reference. This approach is tested by...
Tipo: Conference Paper or Presentation Palavras-chave: Adoption targets; NRM investment; Reasonable assurance; Water quality.
Ano: 2009 URL: http://purl.umn.edu/47940
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Managing Saline Groundwater Impacts from Irrigation - Designing and Testing Emissions Trading in Coleambally Irrigation Area AgEcon
Whitten, Stuart M.; Khan, Shahbaz; Collins, Drew; Ward, John; Robinson, David.
Irrigated agriculture often leads to recharge to local and regional groundwater systems greater than what the systems can absorb, resulting in the development of shallow watertables causing salinity and waterlogging. Policy based on emissions trading offers one option for effective management of existing recharge externalities if effective property rights to diffuse emissions can be defined. In this paper we combine the conclusions drawn from biophysical research with economic principles underpinning emissions trading to present such a system. Allocation of net recharge contracts to irrigation farms will internalize the costs associated with saline aquifer impacts. Irrigators may reduce their compliance costs by creating or purchasing credits that reduce...
Tipo: Conference Paper or Presentation Palavras-chave: Salinity; Irrigation; Recharge; Tradable emissions; Cap and trade; Hydrologic-economic modelling; Experimental economics; Resource /Energy Economics and Policy.
Ano: 2007 URL: http://purl.umn.edu/9975
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Barriers to and Opportunities for Increasing Participation in Conservation Auctions AgEcon
Whitten, Stuart M.; Reeson, Andrew; Windle, Jill; Rolfe, John.
Participation is a relative concept. Too much implies high costs of administration and many losers in a competitive process. Too little implies relatively few gains from trade are accessed. Thus the aim is to optimise rather than maximise participation. In this paper we outline some rules of thumb for setting participation targets and develop a framework for identifying barriers to achieving targets. We use the framework to evaluate six case study tenders covering a variety of land management objectives. These case studies provided pragmatic on-ground lessons in managing participation in real tender applications and resulted in several further lessons for participation management in tender design.
Tipo: Conference Paper or Presentation Palavras-chave: Environmental Economics and Policy; Industrial Organization; Land Economics/Use.
Ano: 2008 URL: http://purl.umn.edu/5973
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Estimating society's willingness to pay to maintain viable rural communities AgEcon
Bennett, Jeffrey W.; van Bueren, Martin; Whitten, Stuart M..
Declining populations in rural and regional areas have become a high political priority in Australia. Calls for measures to support rural communities have been prompted by substantial population declines in some country areas. In Europe and the USA, similar political pressures to halt population losses in rural and regional areas are also apparent; often as a component of the multifunctionality of agriculture. The question addressed in the present paper is whether or not the Australian tax‐paying public would be willing to pay to avoid losses of people from rural and regional areas that may result from environmental protection measures. As an integral component of two recent non‐market, environmental valuation exercises using Choice Modelling, the value of...
Tipo: Journal Article Palavras-chave: Community/Rural/Urban Development.
Ano: 2004 URL: http://purl.umn.edu/117978
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A BIO-ECONOMIC MODEL OF WETLAND PROTECTION ON PRIVATE LANDS AgEcon
Whitten, Stuart M.; Bennett, Jeffrey W..
Wetland ecosystems on privately owned farms – such as those on the Murrumbidgee River Floodplain in the state of New South Wales, Australia – provide a mix of potentially valuable outputs to their owners and the wider community. The mix of values generated is dependent on the biophysical status of the wetlands, which in-turn, is dependent on the land management in and around these multiple-output ecosystems. Despite the range of private and public values generated, management decisions are based primarily on the private values that landowners receive. These private land management decisions also affect social values. Hence, there is potentially a demand for public policy to influence decisions based on the social values wetlands generate. This paper...
Tipo: Conference Paper or Presentation Palavras-chave: Land Economics/Use.
Ano: 2004 URL: http://purl.umn.edu/20122
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Book reviews AgEcon
Marsh, Sally P.; Alaouze, Chris M.; Whitten, Stuart M.; Hanley, Nick.
Tipo: Journal Article Palavras-chave: Teaching/Communication/Extension/Profession.
Ano: 2003 URL: http://purl.umn.edu/116194
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