As the greatest rainwater users among all vegetative land covers, tree plantations have been employed strategically to mitigate salinity and water-logging problems. However, large-scale commercial tree plantations in high rainfall areas reduce fresh water inflows to river systems supporting downstream communities, agricultural industries and wetland environmental assets. A bio-economic model was used to estimate economic demand for water by future upstream plantations in a sub-catchment (the 2.8 million ha Macquarie valley in NSW) of the Murray-Darling Basin, Australia. Given four tree-product values, impacts were simulated under two settings: without and with the requirement that permanent water entitlements be purchased from downstream entitlement... |