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Please use this identifier to cite or link to this item: http://purl.umn.edu/10355

Title: Downstream benefits vs upstream costs of land use change for water-yield and salt-load targets in the Macquarie Catchment, NSW
Authors: Nordblom, Thomas L.
Hume, Iain H.
Finlayson, John D.
Kelly, Jason A.
Welsh, Rob
Hean, Robyn L.
Keywords: policy
markets
upstream
downstream
water, salinity
Issue Date: 2007
Series/Report no.: Conference Paper
Abstract: The net present value (NPV) of downstream economic benefits of changes in water-yield (W) and salt-load (S) of mean annual river flow received by a lower catchment from an upper catchment are described as a 3-dimensional (NPV,W, S) surface, where dNPV/dW > 0 and dNPV/d(S/W) < 0. Upstream changes in land use (i.e. forest clearing or forest establishment, which result in higher or lower water-yields, respectively) are driven by economic consequences for land owners. This paper defines conditions under which costs of strategic upstream land use changes could be exceeded by compensations afforded by downstream benefits from altered water-yields and/or lower salt loads. The paper presents methods, and preliminary calculations for an example river, quantifying the scope for such combinations, and raising the question of institutional designs to achieve mutually beneficial upstream and downstream outcomes. Examples refer to the Macquarie River downstream of Dubbo, NSW, and Little River, an upstream tributary.
URI: http://purl.umn.edu/10355
Institution/Association: Australian Agricultural and Resource Economics Society - 2007>2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand
Total Pages: 12
Language: English
Collections:2007 Conference (51st), February 13-16, 2007, Queenstown, New Zealand

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