DOCSLIB.ORG

Technological Change in the Australian Irrigation Industry: Implications for Future Resource Management and Policy Development Shahbaz Mushtaq and Tek N

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Technological Change in the Australian Irrigation Industry: Implications for Future Resource Management and Policy Development Shahbaz Mushtaq and Tek N View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by University of Southern Queensland ePrints Technological change in the Australian irrigation industry: implications for future resource management and policy development Shahbaz Mushtaq and Tek N. Maraseni Waterlines Report Series No 53, August 2011 NATIONAL WATER COMMISSION — WATERLINES i Waterlines This paper is part of a series of works commissioned by the National Water Commission on key water issues. This work has been undertaken by Shahbaz Mushtaq and Tek N. Maraseni of the University of Southern Queensland, Toowoomba, on behalf of the National Water Commission. The report is based on work undertaken as part of a National Water Commission Fellowship which was awarded to Mr Mushtaq and Mr Maraseni in 2009–10. The Commission's Fellowship Program was established in 2007 to develop future leaders for Australia's water sector by advancing knowledge and building capacity in the sector. The program contributes to the National Water Initiative (NWI) by supporting water professionals with at least 10 years experience to undertake research in areas that could make a significant contribution to knowledge of Australia's water management and use. NATIONAL WATER COMMISSION — WATERLINES ii © Commonwealth of Australia 2011 This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and enquiries concerning reproduction and rights should be addressed to the Commonwealth Copyright Administration, Attorney General’s Department, National Circuit, Barton ACT 2600 or posted at www.ag.gov.au/cca. Online ISBN 978-1-921853-30-2 Technological change in the Australian irrigation industry: implications for future resource management and policy development, August 2011 Authors: Shahbaz Mushtaq and Tek N. Maraseni Published by the National Water Commission 95 Northbourne Avenue Canberra ACT 2600 Tel: 02 6102 6000 Email: [email protected] Date of publication: August 2011 Cover design by: Angelink Front cover image courtesy of Pat Daley An appropriate citation for this report is: Mushtaq S and Maraseni T N 2011, Technological change in the Australian irrigation industry: implications for future resource management and policy development, Waterlines report, National Water Commission, Canberra Disclaimer This paper is presented by the National Water Commission for the purpose of informing discussion and does not necessarily reflect the views or opinions of the Commission. NATIONAL WATER COMMISSION — WATERLINES iii Contents Executive summary ix Crop-level modelling results ix 1. Introduction 1 1.1 Aims and objectives 2 1.2 Scope of the study 3 1.3 Outline of the report 3 1.4 Overview of the Australian irrigation industry 3 2. Literature review 7 2.1 Comparing the efficiency of irrigation systems 7 2.2 Potential onfarm water saving 13 2.3 Water use and energy efficiency 14 2.4 Australia’s proposed CPRS and the agricultural sector 15 2.5 Summary and conclusions of literature review 17 3. Methodology 18 3.1 Integrated modelling 18 3.2 Application of the integrated framework 25 4. Empirical results 27 4.1 Estimation of potential water savings at crop level 27 4.2 Estimation of energy use and GHG emissions 27 4.3 Economics of new irrigation technology 32 4.4 Farm level case studies 41 4.5 Integrated analysis trade-off matrix 74 4.6 Irrigation technology transformation scenarios 75 5. Discussion—the effects and consequences of technological change 82 5.1 Policy-level implications 83 6. Conclusion and recommendations 86 6.1 Key conclusions 86 6.2 Key recommendations 88 Bibliography 90 Appendix A—Types of irrigation systems 99 Appendix B—Questionnaire 100 Tables Table 1: Sources of agricultural water, 2004–05 to 2008–09 .................................................... 4 Table 2: Number of establishments (sites) and irrigation methods in Australia, 2002–03 to 2008–09........................................................................................................... 5 Table 3: Irrigated cropping area 2002–03 and 2008–09 ........................................................... 6 Table 4: Water use and potential water savings for different crops under different irrigation technologies....................................................................................................... 13 Table 5: Energy implication for different farming systems ....................................................... 15 Table 6: Energy content factor in diesel and electricity and their emissions factors ............................................................................................................................... 20 Table 7: Energy content factor for agrochemicals ................................................................... 22 Table 8: GHG emissions due to use of agrochemicals, including production, packaging storage and transportation (kg CO2-e/kg fertiliser element, fe, or active chemical ingredient, ai) .......................................................................................... 22 Table 9: Nitrous oxide (N2O) emissions factors for synthetic fertiliser .................................... 23 Table 10: SWAP model simulation results for average water use and potential water savings for different crops grown under different irrigation technologies in south-eastern Queensland ........................................................................................... 27 Table 11: Energy consumption for installation, maintenance and decommissioning of irrigation machinery, accessories and infrastructure in different irrigation systems as a percentage of total energy values per megalitre of irrigation water .............................................................................................. 28 NATIONAL WATER COMMISSION — WATERLINES iv Table 12: Energy consumption and greenhouse gas emissions in different irrigation systems after considering installation, maintenance and decommissioning energy .................................................................................................. 30 Table 13: Greenhouse gas emissions estimates based on average water use under sprinkler and drip irrigation technology .................................................................. 31 Table 14: Capital and operational costs of irrigation technology ............................................. 32 Table 15: Yields and gross margins of major crops ................................................................ 33 Table 16: Economic evaluation of irrigation technology based on crops ................................ 34 Table 17: Economic evaluation of irrigation technology based on cropping pattern............................................................................................................................... 34 Table 18: Net present value (NPV) of irrigation technology under various water trading prices and water sharing plans............................................................................. 36 Table 19: Net present value (NPV) of irrigation technology under various water savings ............................................................................................................................. 37 Table 20: Net present value (NPV) of irrigation technology under various GHG emission tax ...................................................................................................................... 38 Table 21: Net present value (NPV) of irrigation technology under various yield assumptions ..................................................................................................................... 39 Table 22: Net present value (NPV) of irrigation technology under various yield assumptions ..................................................................................................................... 40 Table 23: Net present value (NPV) of irrigation technology under various interest rates .................................................................................................................................. 41 Table 24: Energy consumption (MJ/ha) and greenhouse gas emissions (kg CO2-e/ha) due to use of fuels in farm operations for cotton crops in case study 1, Darling Downs, southern Queensland ................................................................ 45 Table 25: Energy consumption (MJ/ha) and greenhouse gas emissions (kg CO2-e/ha) due to use of agrochemicals for cotton crops in case study 1, Darling Downs, southern Queensland.............................................................................. 45 Table 26: GHG emissions (kg CO2-e/ha) due to various farming inputs to the two cotton irrigation systems in case study 1, Darling Downs, southern Queensland ...................................................................................................................... 46 Table 27: Economic evaluation of sprinkler (lateral-move) irrigation technology adoption for cotton cropping in case study 1, Darling Downs, southern Queensland ...................................................................................................................... 47 Table 28: Sensitivity analysis of sprinkler (lateral-move) irrigation technology adoption for cotton cropping in case study 1, Darling Downs, southern Queensland ...................................................................................................................... 48
Load more

Recommended publications
  • Reforming International Institutions: Another World Is Possible
    234x156mm + 3mm spine 33.6mm Wa Institutions in Reforming ‘This is an authoritative volume on water institutions and institutional reforms in India. What makes this a unique piece of work is its attempt to effectively link the theory with the empirics of institutional analysis. It is certainly a very valuable addition to the literature on water institutional reforms.’ Management ter Resource Rathinasamy Maria Saleth, Director, Madras Institute of Development Studies, India Edited by Lin Crase and Vasant P. Gandhi ‘This book provides new approaches for design and analysis of institutions and their performance in the water sector. It is a must read for both those who believe in and those who are sceptical about the role of non-structural policies in the water sector.’ Ariel Dinar, Professor of Environmental Economics and Management, and Director of the Water Science and Policy Center, Department of Environmental Sciences, University of California, Riverside, US As water scarcities increase, nations throughout the world are in search of better institutions Reforming to manage water resources. India has been making substantial efforts to develop its water management systems since independence, and significant increases in irrigated agriculture have taken place through both public and private initiatives. However, scarcities are Institutions in increasing and major problems presently confront the management of water resources and irrigated agriculture. Resolving these problems is crucial for the future. The main purpose of this book is to provide a new approach for the analysis and design of Water Resource water institutions that govern the use and development of water resources, particularly for agriculture, which is the largest user.
    [Show full text]
  • Can Irrigation Be Sustainable?
    Can Irrigation Be Sustainable? Shahbaz Khan1, Rana Tariq1, Cui Yuanlai2, J. Blackwell1 1CSIRO Land & Water, Griffith Laboratory, Griffith NSW 2680, Australia. Email: [email protected], Phone: +61-2 6960 1500 Fax: +61-2 6960 1600 2Wuhan University, China. Abstract Globally about 10 Mha of agricultural land are lost annually due to salinisation of which about 1.5 Mha is in irrigated areas. While some climate and management aspects are common to semi-arid regions the detailed mechanisms and options to secure ecological sustainability and economic viability may vary considerably from case to case. This paper applies a whole of system water balance to compare irrigation in three semi-arid regions suffering from similar sustainability issues: Rechna Doab (RD) - Pakistan, the Liuyuankou Irrigation System (LIS) – China and Murrumbidgee Irrigation Area (MIA)-Australia. Soil salinity, lack of adequate water resources and groundwater management are major issues in these areas. The MIA and LIS irrigation systems also suffer from soil salinity and low water use efficiency issues. These similarities occur in spite of very different climatic and underlying hydrogeological conditions. The key data used to compare these different regions are climate and soils, available water resources and their use, as well as components of the water balance. In addition, the history of water resource development in these areas is examined to understand how salinity problems emerge in semi- arid regions and the consequences for production. Based on the efficiency parameters and the definitions of sustainability, approaches are explored to solve common environmental problems while maintaining economic viability and environmental sustainability for irrigation systems.
    [Show full text]
  • 'Irrigation Revitalization in the Asia & Pacific Region : Technical Approach
    ‘Irrigation revitalization in the Asia & Pacific region : Technical approach and future roadmaps’ WORKSHOP 28 February to 2 March 2013 WORKSHOP REPORT Contents Background .......................................................................................................................................... 3 About the workshop ............................................................................................................................ 3 Summary of the workshop .................................................................................................................. 4 Main outcomes of the workshop .................................................................................................... 4 Immediate follow up by key partners ............................................................................................. 6 Timeline proposed for next steps.................................................................................................... 6 Detailed workshop report ....................................................................................................................... 8 Day 1 -28/2 - REVIEW .......................................................................................................................... 8 1-Introductory Session: ................................................................................................................... 8 2-Case Study session – Review user experiences in using MASSCOTE tools: ................................. 9 3-Technical Session
    [Show full text]
  • The Role of Water Markets in Climate Change Adaptation
    The role of water markets in climate change adaptation Final Report Adam Loch, Sarah Wheeler, Henning Bjornlund, Simon Beecham, Jane Edwards, Alec Zuo and Martin Shanahan The role of water markets in climate change adaptation Final report prepared for the National Climate Change Adaptation Research Facility Authors: Adam Loch Sarah Wheeler Henning Bjornlund Simon Beecham Jane Edwards Alec Zuo Martin Shanahan March 2013 Published by the National Climate Change Adaptation Research Facility 2013 ISBN: 978-1-925039-01-6 NCCARF Publication 30/13 Australian copyright law applies. For permission to reproduce any part of this document, please approach the authors. Please cite this report as: Loch, A, Wheeler, S, Bjornlund, H, Beecham, S, Edwards, J, Zuo, A & Shanahan, M 2013, The role of water markets in climate change adaptation, National Climate Change Adaptation Research Facility, Gold Coast, 125 pp. Acknowledgement This work was carried out with financial support from the Australian Government (Department of Climate Change and Energy Efficiency) and the National Climate Change Adaptation Research Facility (NCCARF). The role of NCCARF is to lead the research community in a national interdisciplinary effort to generate the information needed by decision makers in government, business and in vulnerable sectors and communities to manage the risk of climate change impacts. Disclaimer The views expressed herein are not necessarily the views of the Commonwealth or NCCARF, and neither the Commonwealth nor NCCARF accept responsibility for information or advice contained herein. Permissions Figures 7, 12, 13, 16 - 20 © Commonwealth of Australia 2011 Figures 8, 11, 14 © Commonwealth of Australia 2012 Figure 10a © Commonwealth of Australia 2005 Cover image Lock 1 at Blanchetown in South Australia © Murray Darling Basin Authority, taken by Arthur Mostead TABLE OF CONTENTS Glossary of terms v Abstract xi EXECUTIVE SUMMARY 1 1.
    [Show full text]
  • FINAL REPORT Part 1 ‐ Summary Details
    FINAL REPORT Part 1 ‐ Summary Details Cotton CRC Project Number: 5.09.04 Project Title: Benchmarking Water Management in the Australian Cotton Industry Project Commencement Date: 15 Nov 2006 Project Completion Date: 30 June 2008 Cotton CRC Program: Adoption Part 2 – Contact Details Administrator: Helen Kamel Organisation: Dept of Primary Industries and Fisheries Postal Address: PO Box 251, Darling Heights, Q. 4350 Ph: 07 46315380 Fax: 07 46315378 E‐mail: [email protected] Principal Researcher: Graham Harris, Principal Development Extension Officer Organisation: Dept of Primary Industries and Fisheries Postal Address: PO Box 102, Toowoomba, Q. 4350 Ph: 07 46881559 Fax: 07 46881197 E‐mail: [email protected] Supervisor: Andrew Ward Organisation: Dept of Primary Industries and Fisheries Postal Address: PO Box 2282, Toowoomba, Q. 4350 Ph: 4639‐8834 Fax: 4639‐8881 E‐mail: [email protected] Signature of Research Provider Representative: 1 of 43 Background The current drought in Australia is focussing attention on the use of water by the irrigation sector within Australia. The Cotton industry has been specifically targeted as a gross user of water. The industry needs to pull together the currently known information on how water is used by the industry and the benefits that this has for regional communities and the nation as a whole. In addition it needs to demonstrate the improvements in irrigation management that have occurred and are continuing to be implemented by the industry in response to the limited water situation that it finds itself in. At the same time it needs to be confident that it is managing water efficiently and can monitor the on-going improvement in management resulting from the R,D &E effort into improving irrigation management in the industry.
    [Show full text]
  • Examining the Repercussions of the 1876-78 El Niño in Australia and New Zealand
    History of Meteorology 4 (2008) 1 El Niño, Irrigation Dams and Stopbanks: Examining the repercussions of the 1876-78 El Niño in Australia and New Zealand Don Garden Australian Centre for the Study of Science, Innovation and Society and School of Historical Studies University of Melbourne Melbourne, Victoria, Australia Our telegrams to-day still inform us of drought in the South [Island of New Zealand], of inconvenience and suffering to the people from want of water, and of imminent danger that there will be a considerable falling off in the harvest… In the North, though under a hotter sun than shines in Otago or Canterbury, we have as yet felt but little inconvenience from the drought, which has, indeed, been not so prolonged as in the South. The rainfall has, however, been considerably less than for the average of years. Last night, there were symptoms that wet weather was approaching, but it may be some days distant. It is somewhat singular that of late a great part of the world has been tormented by drought. The famine in India was caused by the failure of the periodical rains; the suffering and loss in Australia has been great; Egypt is threatened with scarcity, owing to the scanty overflow of the Nile; and we observe by the papers received last mail that the people of New York were alarmed that the Croton supply was about to fail.1 The famine in Southern India continues to be very severe, and it is much feared that the July and August crops will be a comparative failure, in which case the pressure on the Indian Government and food resources of Bengal and Burmah [sic] will be immense.
    [Show full text]
  • Optimal Efficiency in Gravity Water Distribution Systems
    Optimal Efficiency in Gravity Water Distribution Systems Authors: Jon Peggram ‐ Rubicon Water, 1501 S. Lemay Avenue, Suite 101 Fort Collins, CO 80524 USA [email protected] Damien Pearson ‐ Rubicon Water, 1501 S. Lemay Avenue, Suite 101 Fort Collins, CO 80524 USA [email protected] Abstract New developments in agricultural irrigation technology and management are creating an increased need for on‐demand water supplies which can provide water at the precise time and duration needed for optimal efficiency. With most groundwater supplies already being pushed beyond sustainable use, renewable surface water resources must be managed with greater efficiency and timeliness to meet increasingly variable demands. This paper provides examples of improvement in overall customer service and operating efficiency that have been achieved with modernized canal infrastructure. These examples demonstrate how irrigation control gates and flow meters combined with innovative software and advanced control engineering have improved the management of water in canal distribution systems and on the farm. With better management and control of surface water supplies in open channel gravity networks, water availability can be improved for all users thereby enabling food and fiber producers to employ the latest advancements in efficient irrigation technology. Keywords Water supply network modernization, distribution efficiency, application efficiency, surface water, gravity canal network, automation, flow control, surface irrigation, flood irrigation 1 INTRODUCTION AND BACKGROUND New developments in agricultural irrigation technology and management are creating an increased need for on‐demand water supplies which can provide water at the precise time and duration needed for optimal efficiency. With most groundwater supplies already being pushed beyond sustainable use, renewable surface water resources must be managed with greater efficiency and timeliness to meet increasingly variable demands.
    [Show full text]
  • Farming and Land Stewardship. Case Study – Australia’S Innovations in Sustainable Irrigation
    Farming and land stewardship. Case study – Australia’s innovations in sustainable irrigation Colin Creighton1, Wayne Meyer1 and Shahbaz Khan2 1 CSIRO and 2 Charles Sturt University Abstract Progress towards sustainability in irrigation for Australia is substantial. The prognosis for further improvement is extremely good, given the close link between science and practice and the widespread commitment to continuous improvement of public policy. This builds on the industry track record of rapid response through innovative science-based farm practices. This paper summarises the Australian irrigation industry, outlines how sustainability extends well beyond the farm and farmer control and concludes with some speculation on Australian irrigation futures as the irrigation industry meets the dual challenges of sustainability and productivity. Irrigation in Australia The National Land & Water Resources Audit has detailed the characteristics of the Australian irrigation industry. In summary: . Profitability – Irrigation provides about 26% ($7Billion dollars per annum) of the gross value of agricultural production with flow-on benefits of about five times this value to the Australian community. Area – 2.4 million hectares of irrigated crops and pastures (0.5% of the total area of land in agricultural holdings and 12% of the total area of crops and pastures). Locations . South-eastern Australia - the large inland river systems in the Murray-Darling Basin - rice, horticulture, cotton, wine, and dairy . Queensland coastal catchments such as the Burdekin River floodplain and the black soils of the upper Fitzroy - sugar cane, cotton, grains and horticulture . Western Australia: the Ord River and selected coastal floodplains in the north – horticulyure and sugar cane; and the Swan Coastal plain and other floodplains around Perth - horticulture and dairy .
    [Show full text]
  • Scoping Study: Improving Plants' Water Use Efficiency and Potential
    Scoping study Improving plants’ water use efficiency and potential impacts from soil structure change - research investment opportunities CRCIF technical report 3.14/1 RJ Loch CG Grant DC McKenzie SR Raine Cooperative Research Centre Irrigation Futures March 2005 Improving plants’ water use efficiency and potential impacts from soil structure change - research investment opportunities Disclaimer The information contained in this publication is intended for general use, to assist public knowledge and discussion, and to help improve the sustainable management of land, water and vegetation. It includes general statements based on scientific research. readers are advised and need to be aware that this information may be incomplete or unsuitable for use in specific situations. before taking any action or decision based on the information in this publication, readers should seek expert professional, scientific and technical advice. To the extent permitted by law, the Commonwealth of Australia, Land & Water Australia (including its employees and consultants), the authors, the Cooperative Centre for Irrigation Futures and the National Program for Sustainable Irrigation and its partners do not assume liability of any kind whatsoever resultuing from a person’s use or reliance upon the content of this publication. The National Program for Sustainable Irrigation focuses research on the development and adoption of sustainable irrigation practices in Australian agriculture. The aim is to address critical emerging environmental management issues while
    [Show full text]
  • Irrigation Insights 5
    NUMBER 5 WATER USE EFFICIENCY AN INFORMATION PACKAGE Helen Fairweather, Nick Austin and Meredith Hope, NSW Agriculture WATER USE EFFICIENCY AN INFORMATION PACKAGE Irrigation Insights Number 5 “It is not the quantity of water applied to a crop, it is the quantity of intelligence applied which determines the result - there is more due to intelligence than water in every case” ALFRED DEAKIN 1890 Helen Fairweather, Nick Austin and Meredith Hope, NSW Agriculture ACKNOWLEDGMENTS ACKNOWLEDGMENTS The support of NSW Agriculture’s clerical officers in compiling the literature and research database, which is a compendium to this document is also acknowledged: Libby Martin, Anmaree Leslie, Jakke Bogie and Kate Scholefield. The individuals and organisations that provided case studies are gratefully acknowledged. Thanks to the following reviewers for providing constructive input that has improved the original document: Steven Raine, National Centre for Engineering in Agriculture, Toowoomba, Queensland Jim Purcell, Aquatech Consulting Pty Ltd, Narrabri, NSW Derk Bakker, Agriculture WA, Perth, WA Mark Skewes, Rural Solutions, Loxton, SA WATER USE EFFICIENCY WATER Gregg Dill, Canada Most of the photographs included in this publication were supplied by David Williams (Irrigation Officer, NSW Agriculture). Thanks to David for providing these photographs. The graphics provided by NSW Agriculture graphic designer, Nichole Irvine, are also much appre- ciated. PUBLISHED BY Land & Water Australia GPO Box 2182 Canberra ACT 2601 Phone: 02 6257 3379 Fax: 02 6257 3420 Email: <[email protected]> © Land & Water Australia DISCLAIMER The information contained in this publication has been published by Land & Water Australia to assist public knowledge and discussion and help improve the sustainable management of land, water and vegetation.
    [Show full text]
  • 140 D. (Inagronomy Mimeo 75-15) This Two-Part Publication Contairs
    AGINCY FOR INTURNATIONAL DI[VgrLOPMKNT FOR AID USE OWLY WASHINGTON. 0. C. 20621 BIBLIOGRAPHIC INPUT SHEET IA. PRIMARY ,. SUBJECT Agriculture ______" CLASh$1 Agr c-l re FICATION 1 99CONOARY -. Irrigation 2. TITLE AND SUITITLE Trickle (drip) irrigation, abstracts of references 3. AUTHOR(S) Keng, J. Ching-win s B 4. DOCUMENT DATE 5.NUMBER OF PAGES 6. ARC NUM ER 1975 140 D. 7. REFERENCE ORGANIZATION NAME AND ADDRESS Department of Agronomy, Cornell University, Ithaca, New York 14853 0. SUPPLEMENTARY NOTES (Sponsoring Organization, Publisher, Availability) (InAgronomy mimeo 75-15) 9. ABSTRACT This two-part publication contairs, in Part I, 71 abstracts of journal articles, reports, and theses on the subject of trickle (drip) irrigation. The abstracts were Eelected from 355 in a computer printout produced from a search of the literature in the Northeastern Water Resource Information Terminal, Engineering Library, Cornell University. The literature citations and abstracts are classified into five groups: General Progress; Physics and Mathematical Models; Management and Mechanics; Water Use, Salinity, and Fertilization; and Crop Response. Part IIof this publication consists of 74 references taken from the Second International Drip Irrigation Congress Proceedings (July 7-14, 1974). The citations are organized under headings similar to those used in Part I. 10. CONTROL NUMBER II.PRICE OF DOCUMENT PN-AAB-869 12. DESCIIIPTORS IS. Pi.OJECT NUMBER Abstracts Drip irrigation? 14. CONTRACT NUMBER Reviews CSD-2834 211(d) Trickle irrigation 15. TYPE OF DOCUMENT AID l0-1 14,741 TRICKLE (DRIP) IRRIGATION Abstracts of References assembled by J. Ching-win Keng AgronoMy Mimeo 75-15 Department of Agronomy Cornell University Ithaca, New York 14853 July 1975 Supported in part by grant csd 2834 to Cornell University by the Agency for International Development under the Institutional Grants Program established by Section 211(d) of the Foreign Assistance Act of 1961 as amended in 1966.
    [Show full text]
  • Food Bowl Or Folly? the Economics of Irrigating Northern Australia
    DEPARTMENT OF ECONOMICS ISSN 1441-5429 DISCUSSION PAPER 02/15 Food Bowl or Folly? The economics of irrigating Northern Australia Jared Dent* and Michael B. Ward† Abstract Australia’s northern area has vast but largely undeveloped land that would be arable if irrigated. The prospect of a northern ‘food bowl’ has drawn political support for irrigation schemes from both major parties in the 2013 federal election. In this study we consider the net economic benefits of allocating northern Australia’s divertible surface water to irrigation, a scheme that would require significant infrastructure costs in dam and canal construction. We estimate the benefits to northern Australia, using a Ricardian hedonic approach to forecast the economic value of constructing major new irrigation schemes that would be capitalised into agricultural land values. We use publicly available information from existing and potential Australian irrigation schemes to define the cost of constructing large water storages and distribution infrastructure, as well as on-farm irrigation infrastructure. We find that the costs of turning northern Australia into an irrigated food bowl are likely to exceed any benefits that would be capitalised into land prices by a multiple of between 1.1 and 3.2. JEQ Classifications: Q15, R11 Keywords: irrigation, dams, agriculture, land value, benefit cost analysis * Crawford School of Public Policy, Australian National University † Economics Department, Monash Business School, Monash University © 2014 Jared Dent and Michael B. Ward All rights reserved. No part of this paper may be reproduced in any form, or stored in a retrieval system, without the prior written permission of the authors.
    [Show full text]