Preliminary Economic Assessment of Groundwater Extraction Rules

Abstract

Increased use of irrigation water has imposed stresses on groundwater systems. Declining groundwater levels and spring discharges have heightened water users' concerns about the sustainability of regional economies. Recently there have been initiatives toward groundwater regulation and restrictions on water use have either been implemented or now being proposed. This study investigates the costs imposed on irrigators by restricting groundwater use and the potential for more flexible annual extraction rules that will take account of seasonal variations in rainfall to reduce these costs. The dynamics of the decision‐making process on water use have also been accounted for when irrigators have some flexibility over annual extractions.

An empirical assessment of the value of irrigation water: the case study of Murrumbidgee catchment*

“…Also, a certain number of years are required to reach maturity and full fruit production. Besides published sources (PIRSA 1999; Qureshi et al. 2006, 2007), regional horticulturalists were contacted for information on the agronomic life cycles of these three crops and their water requirements activities (David Pocock, 2007 pers.…”