Lindner, Robert K.

Pannell, David J.

Peterson, Deborah C.

English

Research Papers in Economics

 
The Australian Journal of Agricultural and Resource Economics
 
, 50, pp. 269–270
 
© Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Ltd 2006
doi: 10.1111/j.1467-8489.2006.00360.x
 
Special issue on water economics and policy
 
David Pannell, Deborah Peterson and Bob Lindner
 
†
 
This special issue of the 
 
Australian Journal of Agricultural and Resource
Economics
 
 contains papers that address a wide range of economic and policy
issues involving use and/or conservation of water. Around the world, water
allocation has become a signiﬁcant policy issue in recent years, and agricultural
and resource economists have responded with increased contributions to the
policy debate. With this in mind, the editors decided to invite submissions of
water-related papers, which ultimately led to this special issue.
The countries represented as subjects of the various papers are Australia,
New Zealand, Italy, Spain, and, if we consider the two book reviews, Chile
and the United States. Most papers have an Australian focus. Byrnes 
 
et al
 
.
(this issue) note that:
Water reform in Australia is attracting international interest and has been
applauded by several observers.  For instance, Saleth and Dinar (2004,
p. 173) contend that “[t]hese [policy] changes further enhance the role of
economic  instruments and market-based water allocation procedures
while also improving the physical health and sustainability of the water
sector in Australia”. Similar acclaim appears in The Economist (2003,
p. 13) where Australia was described as “the country that takes top prize
for sensible water management”.
Nevertheless, it is clear from several papers in this issue that there is plenty
of scope for further improvement within Australia. For example, the above
comments relate primarily to reforms in agriculture, rather than the urban
water sector, for which there is much less reliance on markets and prices.
We learn from a number of these papers that market approaches are still not
the chosen policy response, not only in the Australian urban context (Crase),
but also for irrigation water in other countries (Pujol 
 
et al.
 
). The experience of
Australia’s irrigation sector shows that this can change over time.
Change has also occurred in the level of community concern about
environmental issues related to water. Cullen 
 
et al., 
 
for example, document
community concerns about declines in the quality of water in lakes, rivers,
streams and groundwater of New Zealand.
 
†
 
 David Pannell and Bob Lindner are Professors in the School of Agricultural and Resource
Economics at the University of Western Australia. Deborah Peterson is Assistant Commis-
sioner at the Productivity Commission, Melbourne. Deborah Peterson is guest co-editor for
this special issue. 
270 David Pannell, Deborah Peterson and Bob Lindner
 
© Australian Agricultural and Resource Economics Society Inc. and Blackwell Publishing Ltd 2006
 
Other issues addressed in this issue include: trade-offs between economic and
environmental outcomes from water management (Nordblom 
 
et al
 
.), water
pricing (Brennan), water allocation between competing uses (Coram), the
operation and impacts of water markets on third parties (Heaney 
 
et al
 
.),
variability in water supply (Freebairn and Quiggin), urban water demand
(Hoffmann 
 
et al
 
.), and policy options around water rights (Quiggin). Although
the focus of most studies is regionally speciﬁc, we believe that they all contain
lessons of broad international relevance.
Despite the diversity of the studies, one message comes through consistently
and clearly: that economic analysis provides powerful insights that are useful
when considering water policy. We hope that this special issue will be of
interest, and of use, to many readers.
 
References
 
The Economist (2003). Survey: Liquid assets, 
 
The Economist
 
, 19 July 2003, 368(8333), 13–15.
Saleth, R. M. and Dinar, A. (2004). 
 
The Institutional Economics of Water: a Cross-Country
Analysis of Institutions and Performance
 
, Edward Elgar and the World Bank, Cheltenham.

Special issue on water economics and policy

Abstract

Similar works

Full text

Available Versions

Research Papers in Economics