Abstract
Abstract South‐East Queensland has combined the most rapid population growth in Australia with rainfall that has persisted below average for many years. The Queensland Government has responded with a number of plans to supplement existing water supplies in the region. This paper uses a multiregional, dynamic CGE model to estimate the regional impacts of construction of Traveston dam. The magnitude of net welfare benefits of the project depends on underlying assumptions concerning future rainfall patterns. All the mainland state governments are proposing water supply augmentation measures. It is probable that a number of these projects are not justifiable on economic grounds.
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