The valuation of market information from livestock selling complexes

The efficient operation of livestock markets is contingent upon producers accessing relevant market information which assists adjustment to production and distribution. This article provides an analysis of the value of market information gleaned by producers attending public livestock auctions. The article uses the Travel Cost Method to quantify the value of this information and notes the limitations of applying the Travel Cost Method in this context.Agribusiness, Livestock Production/Industries,

Urban Water Restrictions: Attitudes, Information and Willingness to Pay

In most urban cities across Australia, water restrictions remain the dominant policy mechanism to restrict urban water consumption. The extensive adoption of water restrictions over several years means that Australian urban water prices have consistently not reflected the opportunity cost of water (Edwards 2008). Given the generally strong political support for water restrictions and the likelihood that they will persist for some time, there is value in understanding householders’ attitudes in this context. More specifically, identifying the welfare estimate associated with avoiding urban water restrictions entirely would be a non-trivial contribution to our knowledge of the costs that attend them. This paper employs the results from the stated preference technique contingent valuation to investigate consumers’ willingness to pay to avoid urban water restrictions. It also investigates the influence that cognitive and exogenous dimensions have on utility gain associated with avoiding water restrictions. Accordingly, discussion provides some salutary insights into the impact of this policy mechanism on economic welfare.Urban water restrictions, water policy, contingent valuation, Community/Rural/Urban Development, Consumer/Household Economics, Demand and Price Analysis, Environmental Economics and Policy, Health Economics and Policy,

Consumer preferences for water billing structures: A choice modelling approach

The structure of water tariffs is attracting the interest of scholars concerned about the efficacy of the present pricing arrangements. However, finding consensus on the 'appropriate' structure of water and wastewater tariffs has proven problematic. In addition, relatively little is understood of the preferences of consumers in this context. This paper reports the findings of a recent study that developed empirical models of consumer preferences for billing structures for urban water use in regional Victoria.Consumer/Household Economics,

Water rights: a comparison of the impacts of urban and irrigation reforms in Australia

Although there has been a policy thrust towards making all Australians more cognisant of the relative scarcity of water resources, the approach adopted for urban dwellers differs markedly from that applied to irrigators. These differences are examined from a property-rights perspective focussing primarily on the institutional hierarchies in the Victorian water sector. The analysis reveals significant attenuation of urban dwellers’ rights, presumably on the basis of the information deficiencies that circumscribe urban water use. Alternative policy options are then proposed, which might alleviate some of these information deficiencies and simultaneously address the efficiency losses that attend the present arrangements.consumer demand, institutional economics, water management and policy, Resource /Energy Economics and Policy,

Water Buy-Back in Australia: Political, Technical and Allocative Challenges

State and Federal governments are increasingly reliant on the re-purchase of water access rights as a vehicle for bringing ‘over-allocation’ in the Murray- Darling Basin into check. Not surprisingly, this has attracted criticism from several quarters, usually on the basis that such mechanisms produce unnecessary hardship for rural communities. Set against this are the views of many economists who have bemoaned the modest endeavours of governments to actively use water markets and the ongoing proclivity of agencies to instead embark on public projects under the guise of water use efficiency (see, for example Watson 2008). This paper focuses specifically on water buyback and traces recent policy episodes in this context. The paper also offers details of alternative market instruments which have the potential to improve on the current, relatively fragmented arrangements. We use contemporary examples to test the efficacy of alternative buyback instruments in the hope of informing policy formulation.Resource /Energy Economics and Policy,

Regulation versus pricing in urban water policy: the case of the Australian National Water Initiative

The Australian National Water Initiative (NWI) builds on the foundations of earlier water reforms, attempts to correct earlier errors in both policy and its implementation, and seeks to better define some of the policy aims with the benefit of hindsight. However, despite the deliberate effort to improve on earlier reforms, the NWI still embodies a significant economic paradox. Although policymakers have shown their faith in the market insofar as allocating water between competing agricultural interests is concerned, they have not shown the same degree of faith in the ability of urban users to respond to price signals. This paper attempts to shed at least some light on this question by examining the responses of a number of State governments across Australia to the NWI. The paper specifically explores the rationale for non-price regulation in the urban context but challenges the long-term viability of this approach.water reform, urban water, water market, Resource /Energy Economics and Policy,

Water markets as a vehicle for water reform: the case of New South Wales

Water reform in NSW is being undertaken using an adaptive approach in recognition of the uncertainty and imperfect knowledge embodied in the riverine environment. However, the reform process also relies, in part, on the ability of markets for tradable water entitlements to develop and thereby assist in allocating scarce water resources to their highest value use. This article explores impediments to the formation of efficient markets in permanent tradable water entitlements in NSW. The article concludes that more attention should be paid to market failures and related problems which manifest themselves in thin markets for permanent water entitlements.Resource /Energy Economics and Policy,

Determinants of Institutional Success for Water in India: Results from a Study across Three States

There has been substantial focus on water resource development in India, but with emphasis mainly on the technical side. Development of institutions to manage the interactions and arrangements necessary has received little attention. The study uses the new institutional economics framework and governance theories to probe local institutions in water resource management. 29 institutions and 450 households are covered and the data analysed through univariate Anova and multivariate Tobit regressions. The results show the importance of technical, organizational and political governance provided by the institutions. Achievement of efficiency, equity, environment and finance objectives depends substantially on lowering transaction costs through advancing means such as clarity of objectives, good interaction, adaptability, appropriate scale, and compliance.Institutional and Behavioral Economics, Resource /Energy Economics and Policy,

The ecosystem service values of fish ladders in poor counties: Who should pay?

Fish passages are often presented as a parsimonious way of assisting water infrastructure development in poorer countries whilst preserving some ecosystem values. Amongst those values is the provisioning services associated with harvesting local fish and maintaining protein in the diet of the rural poor. However, understanding and capturing the wider benefits of fish ladders is no simple task. On the one hand, ecosystem values, like those related to existence and options values, are notoriously difficult to measure in dollar terms making their inclusion in conventional benefit-cost analyses complicated. On the other hand, the distribution of those values creates additional analytical challenge. More specifically, ecosystem services can accrue across nations and there is no compulsion for beneficiary countries to make payment to ecosystem providers. Establishing mechanisms for voluntary payments from rich nations to afford those services shows some promise, but there are also serious concerns about free-rider effects and the impact on efficient provision. This paper considers the ecosystem benefits of fish passages constructed in Lao. The paper uses this case to highlight the technical challenges of measuring and appropriating the wider values of fish passages. The paper develops and uses a simple model to guide the deployment of different options for securing resources to support fish passage construction

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