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PROPERTY ENTITLEMENTS AND PRICING POLICIES FOR A MATURING WATER ECONOMY
Author(s) -
Randall Alan
Publication year - 1981
Publication title -
australian journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.683
H-Index - 49
eISSN - 1467-8489
pISSN - 0004-9395
DOI - 10.1111/j.1467-8489.1981.tb00398.x
Subject(s) - prima facie , welfare , property rights , economics , water pricing , public economics , business , water conservation , water resources , microeconomics , market economy , ecology , biology , philosophy , epistemology
The Australian water economy is entering a mature phase characterised by inelastic supply of 'new' water and the need for expensive rehabilitation of aging projects. Thus, the policy focus will turn increasingly toward ways of restraining water demand and reallocating existing supplies. A prima facie case is made that the efficiency loss from current water pricing and allocation policy is significant. After considering the relevant welfare economics theory, the theory of administered prices and marketable property rights and some American proposals for reform, a system of transferable water entitlements is proposed and developed.