Abstract
AbstractEffective management of water resources is a critical policy issue globally. Using a framework developed by Turton, and a common set of characteristics describing key stages of water demand, we examine the effectiveness of isolated technical (e.g., irrigation upgrades) and allocative (e.g., buyback) efficiency for reducing water demand to sustainable levels. We base our analysis on Australia's water reform context which offers an advanced example of applying these levers to achieve allocative and technical efficiency. The study is motivated by appreciation of the benefits from increased policy flexibility and adaptability in response to the following: potential transformations toward inflexible production systems; uncertainty associated with impacts of climate change on future water reliability; and the need for increased possible future equity between uses/users (productive/consumptive, environmental, cultural). Our results highlight that a balance between technical and allocative efficiency mechanisms is necessary, as neither is sufficient in isolation, when seeking to reduce total water use. This approach also enables a clearer representation of uncertainty in future policy choices in many global settings with respect to water demand reduction.
Highlights
Water demand curves are used to describe transitions in water supply and demand over time
As societies develop past peak supply, total water demand will reduce to a sustainable level or a new mature stage of use that matches demand with system replenishment potential
Consistent with our earlier assertion of uncertain fifth‐stage outcomes, the examples presented above highlight that total water used on‐farm can increase/decrease depending on the policy lever choice/setting, which may be reflected in future water market prices and irrigator asset values
Summary
Water demand curves are used to describe transitions in water supply and demand over time. Notable exceptions include Turton (1999) on the issue of matching social adaptive capacity to sustainable extraction outcomes, Musgrave (2008) on the increasing recognition of environmental water requirements in Australia's Murray‐Darling Basin (MDB) and the need for sectoral water use shifts, and Mai et al (2019) with respect to the potential for water market systems to facilitate sustainable water use over time None of these authors offer empirical analysis. We draw on several sources to create a set of criteria to describe water demand stages to enable comparison of Turton's levers in the MDB context, and to examine the part each plays in transitioning water demand toward sustainable levels This offers an interesting perspective on current arrangements in Australia that highlight barriers to achieving sustainable objectives in the MDB, which may be relevant for other jurisdictions facing similar future choices
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