Modelling the Australian government's buyback scheme with a dynamic multi-regional CGE model

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Dixon, Peter, Rimmer, Maureen T and Wittwer, Glyn (2009) Modelling the Australian government's buyback scheme with a dynamic multi-regional CGE model. Working Paper. Centre of Policy Studies (CoPS).

Abstract

TERM-H2O is a dynamic, multi-regional computable general equilibrium model of the Australian economy with agricultural detail adapted to include regional water accounts. It focuses on the effects of inter-regional water trading. Factors of production are mobile between sectors in farm industries. TERM-H2O includes complementarity conditions that impose constraints on the volume of irrigation water traded between regions. The application detailed here is to the Commonwealth government's water buyback scheme against a background of temporary drought. The buyback scheme provides a windfall gain for holders of water rights by raising the price of irrigation water. The scheme may provide a net benefit to irrigation regions while increasing environmental flows.

Additional Information

CoPS/IMPACT Working Paper Number G-186

Item type Monograph (Working Paper)
URI https://vuir.vu.edu.au/id/eprint/29396
Official URL http://www.copsmodels.com/elecpapr/g-186.htm
ISBN 0732615933
Subjects Historical > FOR Classification > 1403 Econometrics
Current > Division/Research > Centre of Policy Studies (CoPS)
Keywords C68; Q25; R13; R15; regional modelling; CGE modelling; water
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