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Abstract
The irrigation industry in the Murray-Darling Basin is an
important economic resource in terms of Australian agricultural
production and rural employment. However, the sustainability of
irrigation industries in the region is impeded by the uncertainties
associated with the aging irrigation infrastructure, evolving
institutional arrangements and growing resource degradation
that impact on productivity. Industry reforms intended to relieve
structural and behavioural impediments require wider
participation of stakeholders, significant investments and
commitment to change. The economic success of such policies will
depend on the ability of the stakeholders to pay for those
investments and the effectiveness of reforms in promoting
productive innovation and market competitiveness.
A modelling system to examine the spatial and intertemporal
interactions of adjustment scenarios, including the evaluation of
alternative infrastructure refurbishment options for the basin, is
introduced in this paper. The framework will pemit the treatment
of economic efficiency goals within specified environmental
constraints. ABARE proposes to use this modelling framework in
assessments of water resources policies, technology adoption
infrastructure replacement options.