Irrigation revenue loss in Murray-Darling Basin drought:An econometric assessment

Connor, Jeffery D., Kandulu, John M. and Bark, Rosalind H. (2014) Irrigation revenue loss in Murray-Darling Basin drought:An econometric assessment. Agricultural Water Management, 145. pp. 163-170. ISSN 0378-3774

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Abstract

This article presents an econometric analysis of irrigation commodity area and revenue responses to varying commodity prices, water availability and climate conditions for the second half of a decade long drought in the Murray-Darling Basin, Australia. We find statistically significant evidence of irrigation area decline with reductions in water allocations and irrigation revenue shrinking with area irrigated. Results also indicate hotter drier weather conditions experienced in the drought effected crops differently: some crop revenues suffered, while higher evapotranspiration and yield potential appeared to support higher revenue outcomes for other crops. Comparison revealed that marginal revenue changes in response to water allocations estimated are much less than those implicit in other economic assessments of water scarcity impacts for the same basin that used different methods. We find that triangulation of results between methods provides confidence in consistent results and reveals possible avenues for future research and methodological development.

Item Type: Article
Additional Information: Funding Information: This research was funded by CSIRO and by the CSIRO Water for a Healthy Country Flagship . We thank two anonymous reviewers for their incisive review. Publisher Copyright: © 2014 Elsevier B.V.
Uncontrolled Keywords: drought,econometrics,irrigation,murray-darling basin,water,agronomy and crop science,water science and technology,soil science,earth-surface processes,sdg 6 - clean water and sanitation ,/dk/atira/pure/subjectarea/asjc/1100/1102
Faculty \ School: Faculty of Science > School of Environmental Sciences
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Depositing User: LivePure Connector
Date Deposited: 18 Nov 2021 01:57
Last Modified: 22 Nov 2021 01:37
URI: https://ueaeprints.uea.ac.uk/id/eprint/82173
DOI: 10.1016/j.agwat.2014.05.003

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