Recent Australian Market Mechanisms as a Component of an Environmental Policy That Can Make Choices Between Sustainability and Social Justice

Abstract

Markets in terms of tradeable water or pollution rights, are increasingly being offered as rational solutions for environmental problems. The rational pursuit of personal gain through trading is assumed to promote increased efficiency in resource use and promote a reduction in the negative aspects of the resource use. The social and distributive effects of the introduction of markets and their rules and operations have received little concerted study and examination. In this paper the role of justice considerations in the development of economically rational environmental decision making will be addressed through some case studies of rural water markets and urban water markets in Australia.