Economic approaches to water management in Australia

Abstract

This paper focuses on the use of three economic approaches to water management in Australia that can increase the efficiency of water use and water security, thus providing a fillip to sustainability and economic growth: the establishment of water markets and water pricing; government spending; and the adoption of legislation and economic regulations promoting the development of water markets. Australia is well down the reform path, but needs to complete implementation. Australia's challenge is relevant to many countries struggling with demand and supply water imbalances, and the consequential declining environmental outcomes in rural areas and persistent water shortages in urban areas.